Which Term Best Describes the Effect That Occurs When Production

question 20

Multiple Choice

Which term best describes the effect that occurs when production volume increases and unit costs decline?

• A) competitive advantage
• B) experience curve
• C) virtuous circles
• D) single sourcing

---

Definitions:

Unit Cost

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Tax Revenue

The income collected by governments from taxes, which funds public services such as infrastructure, healthcare, and education.

Cheesecake

A sweet dessert consisting of one or more layers, with the main and thickest layer containing a mixture of soft, fresh cheese, eggs, and sugar.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.