Economies of Scale

question 20

Multiple Choice

Economies of scale:

• A)is the same thing as increasing returns to scale.
• B)exist if a firm increases its output more than in proportion to its total input cost.
• C)exist if a firm increases its output precisely proportional to its total input cost.
• D)refers to the ability to make large-scale investments in capital.

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Definitions:

Interim

Refers to the financial reports that are produced for a period shorter than a fiscal year, often quarterly.

Foreign Currency Borrowing

The action of taking a loan denominated in a currency other than the domestic currency of the entity borrowing.

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, usually at a set rate and schedule.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period.