Economies of Scale Exist as a Firm Increases Its Size

question 17

Multiple Choice

Economies of scale exist as a firm increases its size in the long run because of all of the following except

• A)the firm can afford more sophisticated technology in production.
• B)labour and management can specialise even further in their tasks.
• C)as a larger input buyer, the firm can purchase inputs at a lower per unit cost.
• D)as a firm expands its production, its profit margin per unit of output increases.

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Definitions:

Irresistible Impulse Rule

A legal defense theory that argues a defendant was compelled by an uncontrollable impulse to perform an illegal act, as a result of mental illness, and therefore should not be held accountable.

M'Naghten Rule

A legal standard used to determine criminal liability, which states that a defendant cannot be found guilty if, at the time of the crime, they were so afflicted by a mental disease that they did not know the nature of the act or could not distinguish right from wrong.

Guilty Mind

A legal concept indicating that a person was aware of the wrongfulness of their actions at the time they committed a crime.

Psychoses

Severe mental disorders characterized by a disconnection from reality, which might include delusions and hallucinations.