What Kind of Economies Come from Reductions in Average Costs

question 4

Multiple Choice

What kind of economies come from reductions in average costs due to increases in capacity utilization?

• A)Short-run economies of scale
• B)Short-run economies of scope
• C)Long-run economies of scale
• D)Long-run economies of scope
• E)Fully automated economies

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Definitions:

Population Proportion

The fraction or percentage of the population that exhibits a specific attribute or characteristic.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, reflecting how the statistic varies from sample to sample.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, especially of the mean.

Probability

The chance or likelihood that a particular event will occur, quantified as a number between 0 (impossible) and 1 (certain).