When a Firm Produces a Large Quantity of a Product

question 266

Multiple Choice

When a firm produces a large quantity of a product, the cost of producing each individual unit usually goes down. This is known as:

• A) discrepancies of quantity.
• B) exchange efficiency.
• C) economies of scale.
• D) macro-marketing.
• E) discrepancies of assortment.

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Definitions:

Importer

An individual or entity that buys goods or services from another country for use, resale, or processing within the importer's home country.

Domestic Price

Domestic price is the price of goods or services within a country, unadjusted for international trade effects or exchange rates.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a decrease in total surplus.

Tariffs

Taxes imposed by a government on imported goods. They are used to restrict imports by increasing the price of goods and services purchased from abroad, making them less attractive to consumers.