Economies of Scale Occur Where

question 159

Multiple Choice

Economies of scale occur where

• A)long-run average cost falls as new firms enter the industry
• B)short-run average cost falls as new firms enter the industry
• C)long-run average cost falls as one firm expands plant size
• D)short-run average cost falls as one firm expands plant size
• E)long-run average cost rises as one firm expands plant size

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Definitions:

United Automobile And Aerospace Workers

A labor union that represents workers in the automobile, aerospace, and agricultural implement manufacturing industries in the United States.

Monopsony

Monopsony is a market condition where there is only one buyer for a product or service, giving the buyer substantial control over the market and the terms of purchase.

J.P Stevens

An American textile manufacturer once prominent but now absorbed through various mergers; also known for landmark labor disputes.

ToyotA

A multinational automaker headquartered in Japan, known for its innovative production methods and a wide range of vehicles.