Which of the Following Is an Example of External Economies

question 55

Multiple Choice

Which of the following is an example of external economies?

• A) The cost of per unit produced in manufacturing goods falls as the industry size grows.
• B) The cost of per unit produced falls as the firm size, not the industry size, grows.
• C) The cost of per unit produced in manufacturing goods increases as the industry grows.
• D) The cost of per unit produced falls as the size of the firm grows.

---

Definitions:

Director's Duties

Obligations that directors are expected to fulfill, including acting in the company's best interests and with due care.

Corporation

A legal entity recognized by law, separate from its owners, with the ability to own assets, incur liabilities, and conduct business.

Dividends

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Reserved Funds

Monies set aside for specific purposes or contingencies, not to be used for general expenses.