Businesses Benefit from Economies of Scale When the Cost of an Investment

question 22

Multiple Choice

Businesses benefit from economies of scale when the cost of an investment can be:

• A) spread across increasing units of production.
• B) used in serving a niche and loyal customer base.
• C) used to build a brand image for products through advertising.
• D) leveraged to recruit consumers to promote a product or service.
• E) diverted to implementing technology upgrades in the business model.

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Definitions:

Productivity

The measure of efficiency in converting inputs into useful outputs, commonly evaluated in terms of the rate of output per unit of input.

Icons

Graphic symbols used to represent applications, functions, or features on a computer interface.

Alphabetical

An ordering scheme based on the sequence of letters in the alphabet, commonly used for sorting lists of words or names.

Contiguously

In a manner that involves elements being continuous or connected in sequence without interruption or gaps.