What Kind of Economies Come from Reductions in Cost Due

question 8

Multiple Choice

What kind of economies come from reductions in cost due to adoption of technology that has high fixed costs,but lower variable costs?

• 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)Partially automated economies

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Definitions:

Negative Cumulative Cash Surplus

A financial situation where the cumulative cash flows from a project or business are negative, indicating a deficit.

Borrowing Need

The necessity for an individual or organization to raise funds through loans or debt issuance to finance its operations or investments.

Costs Of Placing An Order

Expenses associated with ordering inventory, including administrative costs, shipping, handling, and procurement costs, critical in managing inventory levels.

Shortage Cost

Costs incurred from not having enough inventory or resources to meet demand, including lost sales and dissatisfied customers.