Which of the Following Terms Refers to the Unit Cost

question 31

Multiple Choice

Which of the following terms refers to the unit cost reductions associated with large sized outputs?

• A) Absolute advantage of production
• B) Economies of scale
• C) Constant marginal returns
• D) Diminishing marginal returns

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Definitions:

AARP

The American Association of Retired Persons, an organization focused on issues affecting those 50 and older.

Membership

generally refers to being a part of or belonging to a group, organization, or community, often with specific rights, duties, or benefits.

Underwater

Located or occurring beneath the surface of the water; can also metaphorically refer to being overwhelmed, as in debt or pressure.

Mortgage

A loan specifically used for the purchase of real estate, where the property itself serves as collateral for the loan.