Steve Owns a Bike Store

question 8

Multiple Choice

Steve owns a bike store. If he decided to expand the size of his store so that he could sell more bikes, how would he know if he is experiencing economies of scale in the long run?

• A) His long-run average cost of selling each bike remains unchanged.
• B) His long-run average cost of selling each bike decreases.
• C) His long-run average cost of selling each bike increases.
• D) His long-run total cost of selling bikes increases.
• E) His long-run fixed cost of selling bikes increases.

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Definitions:

Pioneer Species

The first species to colonize barren environments or freshly disturbed lands, often initiating ecological succession.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Herbivory

The act of eating plants, typically referring to the feeding behavior of certain animals.

Competitive Exclusion

A principle stating that two species competing for the same limited resource cannot coexist at constant population values.