Increasing Returns to Scale Refers To

question 101

Multiple Choice

Increasing returns to scale refers to:

• A)the notion that proprietorships are less bureaucratic and, therefore, more efficient than corporations
• B)public investment in highways, schools, utilities, etc.
• C)the fact that large producers may be able to use more efficient production techniques
• D)the reallocation of labour from less productive to more productive uses
• E)the fact that corporations have a more streamlined, efficient form of organization than do proprietorships

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Definitions:

Executives

Senior-level employees responsible for strategizing, decision-making, and overseeing a company or organization's overall direction.

General Public

The broad group of people in society who do not have a specialized knowledge of or professional involvement in a particular subject.

Privately Held

A business ownership structure where the company’s shares are not traded on public stock exchanges and are typically owned by founders, management, or a private group.

Closely Held

A business that is privately owned, typically with a small number of shareholders, and not publicly traded on stock markets.