The Main Source of Economies of Scale Is

question 8

Multiple Choice

The main source of economies of scale is

• A) reductions in the price of factors of production.
• B) greater specialization of both labor and capital.
• C) increasing average costs.
• D) decreasing marginal product.
• E) the ability to hire less labor.

Recognize the importance of middle managers in conveying organizational support to employees.

Understand the distinction between intrinsic and extrinsic motivation in relation to creativity.

Identify the environmental factors that stimulate or stifle creativity in organizational settings.

Comprehend the stages of the innovation process and the role of problem-solving in creativity.

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Definitions:

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Socialism

An economic system in which the government owns most of the productive resources except labor; it usually involves the redistribution of income.

Private Ownership

The ownership of property and businesses by individuals or corporations rather than by the government or the public as a whole.

Redistribution of Income

The transfer of income and wealth from some individuals to others through a social mechanism such as taxation, charity, welfare, public services, land reform, or monetary policies.