Which Economic Concept Explains Why a Large Drugstore Chain Can

question 80

Multiple Choice

Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?

• A)increasing marginal returns
• B)diminishing marginal returns
• C)economies of scale
• D)diseconomies of scale
• E)constant returns to scale

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Definitions:

Trade Agreements

Formal arrangements between countries to regulate tariffs, trade barriers, and the exchange of goods and services.

New Technologies

Emerging or advanced technologies that offer novel capabilities or significant improvements over pre-existing solutions, often driving innovation and change.

Needs Analysis

The process of determining and assessing gaps between current performance and desired outcomes or competencies, often used to identify training and development needs.

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Organizational activities aimed at boosting the performance and efficiency of individuals and groups within a business setting through learning and development opportunities.