Economies of Scale Arise When the Average Cost of Production

question 38

Multiple Choice

Economies of scale arise when the average cost of production falls

• A) as the number of units falls.
• B) as the number of units rises.
• C) as specific experience skills decline.
• D) as specific experience skills increase.
• E) as profits increase.

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Definitions:

Chin

The protruding part of the face below the mouth, formed by the mandibular bone.

Hyoid

A U-shaped bone in the neck that supports the tongue and provides an attachment point for the muscles of the floor of the mouth and the tongue above.

Cervical

Relating to the cervix of the uterus or relating to the neck region of the body.

Vertebral Column

The backbone or spine, consisting of a series of vertebrae that extend from the skull to the tailbone, providing structural support and protection for the spinal cord.