Economies of Scale Occur When ________

question 62

Multiple Choice

Economies of scale occur when ________.

• A) increasing production lowers the average cost of each unit produced
• B) increasing production increases the average cost of each unit produced
• C) decreasing production lowers the average cost of each unit produced
• D) decreasing production increases the average cost of each unit
• E) increasing production increases the fixed cost of doing business

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Definitions:

Business Method Patents

Patents that protect new and innovative methods of doing business, including online business practices, financial services, and insurance products.

Registered Trademark

A symbol, word, or phrase that has been officially registered with a government authority to differentiate products or services.

Trade Secret

A formula, practice, process, design, instrument, pattern, or compilation of information that is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers.

Unique Manufacturing

A production process characterized by creating novel and one-of-a-kind products not readily available in the market.