16-70 Which of the Following Best Describe Economies of Scale

question 65

Multiple Choice

16-70 Which of the following best describe economies of scale?

• A)The average cost of production decreases as the level of output increases.
• B)The effects on costs related to managerial ability and other hard-to-quantify factors.
• C)Cost savings are realized from using many of the same inputs to produce multiple products.
• D)The average cost of production increases as the level of output increases.
• E)Cost increases are realized from using many of the same inputs to produce multiple products.

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Definitions:

Units

Measurements or quantities of a product, item, or component regarded as a single entity.

Organization

An entity, such as a company, institution, or association, composed of individuals working together towards a common goal, structured to allocate responsibilities, tasks, and authority.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Not-for-Profit Organizations

Organizations that operate for purposes other than generating profit, focusing on social, educational, or charitable objectives.