The Term "Economies of Scale" Means That

question 363

Multiple Choice

The term "economies of scale" means that:

• A) The largest producers are always the most efficient.
• B) The cost of a product goes down as a company produces larger numbers of it.
• C) The more one produces, the greater the profit.
• D) It is more efficient for an economy to have a large number of transactions.
• E) None of these is correct.

---

Definitions:

Hypothetical Thinking

The ability to consider multiple possibilities and outcomes of situations that are not necessarily rooted in current reality.

Formal Operational Stage

The stage in Piaget's theory of cognitive development (beginning around age 12) where individuals develop the ability to think abstractly, reason logically, and plan systematically.

Cognitive Development

The study of how thinking, problem solving, and intelligence change and mature through childhood into adulthood.

Object Permanence

The understanding that objects continue to exist even when they cannot be perceived.