Economies of Scale in Activities Such as R&D,new Product Development,advertising,and

question 58

Multiple Choice

Economies of scale in activities such as R&D,new product development,advertising,and government lobbying arise mainly because of:

• A)Specialization-as these activities grow in scale,there are productivity gains from division of labor
• B)Indivisibilities-these activities involve large fixed costs that can be spread over a larger volume of output
• C)Technical input-output relationships-increases in output do not require proportionate increases in input
• D)Increased bargaining power-large companies can negotiate lower input prices for these activities

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Definitions:

Mastership

The possession or demonstration of masterly skill or great proficiency.

Larger Chunks

In memory studies, this refers to the process of organizing individual pieces of information into larger, more manageable units or groups.

Basic Thinking Skills

Fundamental cognitive skills, including reasoning, analyzing, synthesizing, and evaluating information.

Restructuring

The process of changing the organization, shape, or pattern of something, often referring to cognitive processes in psychology.