Economies of Scale and Increasing Returns to Scale Are the Same

question 116

True/False

Economies of scale and Increasing Returns to Scale are the same thing looked at from either the production or cost perspective.

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Current Asset

Assets expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

FOB Shipping Point

FOB Shipping Point is a delivery term that means the buyer takes ownership and responsibility for the goods once they leave the seller's premises.