When the Average Unit Cost of a Good or Service

question 45

Multiple Choice

When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is known as _____.

• A) economies of scale
• B) diseconomies of scale
• C) cost cushioning
• D) capacity cushion

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Definitions:

Nervous System

The complex network of nerves and cells transmitting signals between different parts of the body, responsible for coordinating actions and sensory information.

Dendritic Spine

Small protrusions from a neuron's dendrite that typically receive synaptic inputs from other neurons, playing a crucial role in synaptic strength and network connectivity.

Electrical Impulses

Signals that travel along neurons, enabling communication within the body, particularly in the nervous system.

Neuron's Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.