A University That Benefits from Lower Costs Per Enrolled Student

question 218

Multiple Choice

A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

• A)economies of scale.
• B)diseconomies of scale.
• C)increasing opportunity costs.
• D)scale reduction.

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Definitions:

Net Cash

The amount of cash available after accounting for cash inflows and outflows over a period.

Financing Activities

Transactions related to raising and repaying capital, such as issuing stocks or bonds and paying dividends.

Net Cash

The amount of cash that is available after all debts and expenses have been paid.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and other investments not included in cash equivalents.