Which One of the Following Is Not One of the Elements

question 32

Multiple Choice

Which one of the following is not one of the elements in the industry life cycle?

• A)Start-up
• B)Rapid growth
• C)Consolidation
• D)Maturity
• E)relative decline

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Specialization of Labor

The division of labor where individuals or groups focus on specific tasks or jobs, increasing efficiency and productivity.

Diminishing Marginal Returns

Diminishing marginal returns occur when the increase in output from adding an additional unit of input decreases, holding all other inputs constant.

Long-run Average Total Cost

The average cost per unit of output when all inputs, including capital, can be varied, and economies of scale are realized fully.