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________ place some restrictions on the firm in such a way as to improve the odds that the bondholders will be repaid.
Economies of Scale
Enterprises see cost efficiencies due to their operating scale, with the cost for every unit of output generally declining as the scale enlarges.
Economies of Scale
Describes the cost benefits that companies achieve through their operation size, where the cost for each unit produced typically falls as the scale of operation grows.
Constant Marginal Cost
A situation in which the cost of producing one additional unit of a product remains the same, regardless of the volume produced.
Average Fixed Cost
The cost that a company incurs for fixed resources divided by the quantity of output produced.
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