Economies of Scale Exist as a Firm Increases Its Size

question 296

Multiple Choice

Economies of scale exist as a firm increases its size in the long run because of all of the following except

• A)the firm can afford more sophisticated technology in production.
• B)labor and management can specialize even further in their tasks.
• C)as a larger input buyer, the firm can purchase inputs at a lower per unit cost.
• D)as a firm expands its production, its profit margin per-unit of output increases.

Analyze the impact of changes in current and non-current accounts on cash flows.

Understand the different types of taxes (proportional, progressive, regressive) and their impacts.

Identify the roles and responsibilities of government in economic systems.

Analyze the federal budget's components and the implications of fiscal policy decisions.

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Definitions:

Consolidation

Merging the financial results and operations of two or more entities into a single set of statements for reporting purposes, reflecting their combined performance and financial position.

Mutual Ownership

A form of ownership where an organization is owned by its members or customers, who share the benefits of ownership such as receiving dividends.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Consolidation Worksheet

A tool used in preparing consolidated financial statements, aiding in the combination of financial information from multiple entities within a corporate group.