If There Are Significant Economies of Scale in an Industry

question 27

Multiple Choice

If there are significant economies of scale in an industry, then

• A) a firm that is large may be able to produce at a lower unit cost than can a small firm.
• B) a firm that is large will have to charge a higher price than will a small firm.
• C) entry to that industry will be easy.
• D) firms must differentiate their products to earn economic profits.

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Definitions:

Ability to Function

The capacity of an individual or system to operate or perform effectively in a variety of conditions or situations.

Spiritual Needs

The aspect of healthcare that recognizes and addresses the emotional and existential needs related to belief systems, faith, or religion.

Establishing Presence

The act of making oneself known or recognized in a particular space or situation.

Art of Nursing

The aspect of nursing that goes beyond the application of scientific knowledge and includes intuitive understanding, empathy, and the ability to connect with patients on a personal level.