Economies of Scale Exist When Firms Have

question 90

Multiple Choice

Economies of scale exist when firms have:

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)constant marginal cost.

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Definitions:

Legal Entities

Organizations or structures that are recognized by the law as capable of rights and obligations, such as corporations, partnerships, and trusts.

Repudiated

When a party refuses to acknowledge or fulfill their contractual obligations, effectively rejecting the contract.

Enforceability

The capability of a contract or legal agreement to be legally compelled or upheld in a court of law.

Capacity

The legal ability, competency, or power of an individual or entity to enter into binding contracts or perform some act.