When Economies of Scale Are Large,firms Can Reduce Their Average

question 45

Multiple Choice

When economies of scale are large,firms can reduce their average total cost by:

• A) selling off their subsidiaries.
• B) merging into even larger firms.
• C) eliminating the bureaucratic costs.
• D) hiring professional managers.

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Definitions:

CO

Carbon monoxide, a colorless, odorless gas that is toxic to humans and animals at high concentrations, produced by incomplete combustion of carbon-containing materials.

1° Alcohol

An alcohol where the hydroxyl (-OH) group is attached to a carbon atom that is itself bonded to only one other carbon atom, known as primary alcohol.

Organic Product

A compound mainly made of carbon atoms, often derived from living organisms or their products.

Reaction

A process through which substances interact to form new products, typically involving changes in molecular or ionic structure.