Suppose That Gigantic Company Is Increasing in Size

question 67

Multiple Choice

Suppose that Gigantic Company is increasing in size. As Gigantic Company grows, they are able to buy inputs in bulk, resulting in lower input prices. It is likely that continued growth will result in

• A) economies of scale.
• B) Gigantic Company achieving the minimum efficient scale of production.
• C) diseconomies of scale.
• D) increasing marginal returns.

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Definitions:

Hi-Lo Flipper Switch

An electrical switch designed to change between high and low settings, often found in vehicle lighting or industrial machines for operational adjustments.

Slave Valve

Any of a number of types of air or hydraulic actuators.

Master Valve

A primary control valve used to start or stop fluid flow in a system, often used in piping and machinery for operational control.

Electric Shifter Assembly

An electronically controlled mechanism that allows drivers to change gears in a vehicle, typically providing smoother gear transitions.