Which of the Following Statements About Economies of Scale Is

question 19

Multiple Choice

Which of the following statements about economies of scale is NOT true?

• A)One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.
• B)One reason economies of scale occur is because employees become more efficient as volume increases.
• C)Economies of scale refers to the fact that as volume increases,total cost of production decreases.
• D)Economies of scale may not exist at all levels of production.

---

Definitions:

Critics

Individuals or groups who express judgments or evaluations, often negative, about various subjects, including art, literature, policies, or societal norms.

Government

An organized group or system responsible for governing a structured community, typically a country.

Efficiency Loss

The decrease in economic efficiency that occurs when a market outcome does not allocate resources in the most economically beneficial way, often due to externalities or market failures.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person’s use does not diminish another's.