If the Output Rate for a Given Level of Capacity

question 22

Multiple Choice

If the output rate for a given level of capacity is less than the optimum level,then ______.

• A)increasing the output level reduces economies of scale
• B)increasing the output level increases economies of scale
• C)decreasing the output level increases economies of scale
• D)decreasing the output level maintains economies of scale

---

Definitions:

Financial Obligation

A legal responsibility to settle a debt or pay for a service or product that has been received.

Registered Securities

Securities with which the issuer or a transfer agent keeps a list of the names of owners. Dividends or interest payments are made to owners of record as of specified dates.

Transfer Agent

A financial institution or trust company designated by a corporation to keep records of investors, account balances, and transactions, and manage the transfer of stocks and bonds.

Negative Return

A loss that occurs when the value of an investment decreases compared to its initial purchase price.