Economies of Scale

question 39

Multiple Choice

Economies of scale

• A)Exist in both the short run and the long run.
• B)Explain why average variable and average total costs decline in the short run.
• C)Explain why average total costs decline as output increases in the long run.
• D)Explain why average total costs increase as output increases in the long run.

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Definitions:

Drainage Bag

A bag attached to medical devices (e.g., catheters) to collect bodily fluids for disposal.

Graduated Receptacle

A container marked with units of measurement used for accurately measuring liquids or other substances.

Health Care-associated Infection

An infection acquired by patients during the course of receiving treatment for other conditions within a healthcare setting.

Surgical Aseptic Technique

A set of specific practices and procedures performed under strictly controlled conditions with the aim of minimizing contamination by pathogens.