The Table Given Below Shows the Average Total Cost of Production

question 55

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-Which of the following may lead to diseconomies of scale?

• A)Specialization on the basis of comparative advantage
• B)Lack of coordination among the division heads
• C)Using larger and more efficient machineries
• D)Division of labor on the basis of capability
• E)Specialization of marketing, pricing, and research

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Definitions:

Creditors' Protection

Legal and financial mechanisms designed to safeguard the interests and rights of creditors, ensuring they receive payment owed to them.

Effective Interest Rate

The real rate of interest earned or paid on a loan or investment over a period, taking into account the effect of compounding.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.

Contract Rate

The specific interest rate established in a lending or financial agreement, often determining the amount of interest a borrower will pay over the term of a contract.