The Ability to Utilize Processes or Materials for Multiple Related

question 33

Multiple Choice

The ability to utilize processes or materials for multiple related products and thereby gain efficiencies is referred to as economies of ____.

• A) scale
• B) production
• C) agility
• D) scope
• E) size

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Definitions:

Efficient

The optimal allocation of resources to maximize the production of goods and services without wasting those resources.

Production Possibilities Frontier

A curve that shows the maximum efficient production level of one good for a given level of production for another, assuming fixed resources and technology.

Slope

In mathematics and economics, slope refers to the steepness, gradient, or inclination of a line, indicating the rate of change between two variables.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.).