Which Economic Concept Explains Why a Large Drugstore Chain Can

question 80

Multiple Choice

Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?

• A)increasing marginal returns
• B)diminishing marginal returns
• C)economies of scale
• D)diseconomies of scale
• E)constant returns to scale

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Definitions:

Biweekly Salaries

A compensation structure where employees are paid every two weeks, typically resulting in 26 pay periods per year.

Fiscal Period

A specific time period for which an organization prepares its financial statements and reports its financial performance.

Adjusting Entry

An accounting record made to update the book balances to reflect the true financial status before preparing financial statements.

Biweekly Salaries

A payment schedule for employees where wages are paid every two weeks, resulting in 26 pay periods in a year.