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An Ad for a Framing Company Is in the Middle

question 35

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An ad for a framing company is in the middle of a page in an issue of a homemaking magazine.It is surrounded by more editorial matter on decorating "Do's and Don'ts." Which of the following terms best describes the ad?


Definitions:

Average Variable Cost

The total variable costs of production divided by the number of units produced, indicating the variable cost per unit.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm or production process scales up, contrary to economies of scale where costs decrease.

Boeing

An American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.

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