With Accumulated Production Experience and a Higher Volume of Production

question 8

Multiple Choice

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________.

• A) gain economies of scale
• B) incur higher overhead costs
• C) create derived demand in the market
• D) spend more per unit of produced output
• E) tend to routinely spend less on inputs

---

Definitions:

Supplement Income

Additional income earned beyond the primary source of income, often used to meet extra expenses or save for future needs.

Going Rate

The current average or standard price for goods or services in a particular market or industry.

Lottery

A form of gambling involving the drawing of numbers at random for a prize.

Annuity

A financial instrument that provides a regular sequence of payments to a person, mainly serving as a source of income for those who have retired.