Which of the Following Terms Refers to the Unit Cost

question 89

Multiple Choice

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

• A) absolute advantage of production
• B) economies of scale
• C) constant marginal returns
• D) diminishing marginal returns

---

Definitions:

Prohibitive

Referring to something that discourages action or imposes a constraint by rules, laws, or circumstances.

Restrictive

Imposing limitations or restrictions on actions, movements, or decisions.

Affectionate

Exhibiting feelings of fondness or tenderness towards others.

Indulgent

Being indulgent is characterized by a tendency to be overly generous or lenient, often in a way that allows for excessive freedom or the gratification of desires.