Economies of Scale Refers to Returns That Occur When

question 112

Multiple Choice

Economies of scale refers to returns that occur when:

• A)an increase in the quantity of output decreases average total cost in the long run.
• B)an increase in the quantity of output increases average total cost in the long run.
• C)average total cost does not depend on the quantity of output in the long run.
• D)None of these is true.

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Definitions:

Sir Humphrey Gilbert

An English navigator and explorer in the 16th century, recognized for his efforts in attempting to establish the first English colony in North America.

Sir Walter Raleigh

An English adventurer, writer, and courtier of Queen Elizabeth I, known for popularizing tobacco in England and for his attempts to establish colonies in the Americas.

Virginia Company

A joint-stock enterprise that King James I chartered in 1606. The company was to spread Christianity in the New World as well as find ways to make a profit in it.

Functioning Society

A social group or system working effectively together with established structures and institutions that maintain its stability and development.