Every Capacity Alternative,whether It Is a Large,medium,or Small Plant or Equipment,has

question 66

Multiple Choice

Every capacity alternative,whether it is a large,medium,or small plant or equipment,has an optimum production or operating volume level.Producing beyond the optimum level causes ______.

• A)diseconomies of scale
• B)economies of scale
• C)economies of scope
• D)diseconomies of scope

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Definitions:

Firm Sales

Firm sales refer to the total amount of revenue that a company generates from the sale of its goods or services within a specific time frame.

Oligopolists

Firms in a market structure dominated by a small number of large companies, having significant control over their industry's prices and policies.

Pure Monopolists

Firms that are the sole providers of a product or service in a market, facing no competition.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for investing in business growth.