When Economies of Scale Exist,an Increase in the Level of Output

question 113

Multiple Choice

When economies of scale exist,an increase in the level of output will lead to:

• A) a decrease in cost per unit.
• B) an increase in cost per unit.
• C) a decrease in total cost.
• D) both a. and c. above

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Definitions:

4%

An interest rate or percentage representing a part of a whole, especially in the context of financial rates.

C$ Per US$

The exchange rate determining how much Canadian dollars (C$) you can exchange for one US dollar (US$).

Exchange Rate

The financial value of one currency in the context of another for the purpose of exchange.

C$0.005

Represents a monetary value of five one-thousandths of a Canadian dollar.