The Level of Output at Which All Economies of Scale

question 301

Multiple Choice

The level of output at which all economies of scale have been exhausted is known as

• A)constant returns to scale.
• B)minimum efficient scale.
• C)the economically efficient output level.
• D)optimal economic size.

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Definitions:

Earning Per Share

A financial metric that represents a portion of a company's profit allocated to each outstanding share of common stock, showing a company's profitability per share.

Total Equity

The sum of shareholders' equity in a company, representing the total value of the company's assets that would remain after settling all of its debts.

ROE

Return on Equity, a financial ratio indicating the profitability of a company by showing the amount of net income returned as a percentage of shareholders equity.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression.