Which of the Following Refers to the Reductions in Unit

question 107

Multiple Choice

Which of the following refers to the reductions in unit cost achieved by producing a large volume of a product?

• A)Location economies
• B)Learning effects
• C)Standardization economies
• D)Core economies
• E)Economies of scale

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Definitions:

Marginal Utilities

The increased enjoyment or benefit obtained by a user from the consumption of one more unit of a good or service.

Buyer's Income

The total earnings available to a buyer for the purpose of making purchases, including both disposable income and any credit.

Prices

The amount of money expected, required, or given in payment for goods or services.

Budget Line

An illustrated chart detailing every possible pair of two items that could be acquired given a certain financial limit at fixed prices.