Which of the Following Best Describes Economies of Scale

question 73

Multiple Choice

Which of the following best describes economies of scale?

• A)The average cost of production decreases as the level of output increases.
• B)The effects on costs related to managerial ability and other hard-to-quantify factors.
• C)Cost savings are realized from using many of the same inputs to produce multiple products.
• D)The average cost of production increases as the level of output increases.
• E)Cost increases are realized from using many of the same inputs to produce multiple products.

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Definitions:

Staying The Same

Maintaining an unchanged state or position over a period of time.

Motivational Dynamics

The study of the forces and processes that drive individuals to behave in certain ways, often focusing on the interplay between different motivations.

Drive-Reduction Theory

A psychological theory that posits that motivation arises from the desire to reduce an uncomfortable state of tension caused by unmet needs.

Homeostasis

The method through which living beings maintain a steady and unchanging state by controlling their internal surroundings.