Economies of Scale Increases the Efficiency of Resource Utilization,therefore Increasing

question 16

Multiple Choice

Economies of scale increases the efficiency of resource utilization,therefore increasing what?

• A) costs
• B) capital
• C) factor endowments
• D) productivity
• E) profitability

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Definitions:

Expected Returns

The anticipated return on an investment, factoring in the probability of all possible outcomes.

R&D Expenditures

Funds allocated towards research and development activities in order to innovate or improve products or services.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation.

Market Structure

Refers to the organizational characteristics of a market, including the number of firms, level of competition, and the distribution of market shares.