Economies of Scale Are

question 52

Multiple Choice

Economies of scale are:

• A)unit cost increases associated with learning effects.
• B)unit cost reductions due to inferior quality of products.
• C)realized when output is reduced to a minimum.
• D)realized when the selling price is equal to the cost price of the products.
• E)unit cost reductions associated with a large-scale output.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on product differentiation.

Monopoly

A market structure where a single firm controls the entire market for a particular good or service.

Demand Curves

Graphs that illustrate the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at different prices.