Which of the Following Statements Is True About Economies of Scale

question 17

Multiple Choice

Which of the following statements is true about economies of scale?

• A)Economies of scale lead to an increase in the average unit cost of a product.
• B)Attaining economies of scale increases a firm's profitability.
• C)The ability to spread variable costs over a large volume is a source of economies of scale.
• D)Economies of scale result due to the increase in the perceived value of a product.
• E)Economies of scale refer to cost savings that come from learning by doing.

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Definitions:

Frankfurt School

A group of German social philosophers dedicated to understanding the role of culture and mass communication in the Nazi regime.

Authoritarian Personality Theory

A theory that suggests that a personality type characterized by strict adherence to conventional values and a belief in absolute obedience or submission to authority figures may be more susceptible to following authoritarian regimes.

Theodor Adorno

A German philosopher and sociologist known for his critical theory of society, contributions to aesthetics, and critique of culture and authoritarianism.

Financial Hardship

A situation where a person struggles to meet basic financial obligations.