Economies of Scale Can Occur as a Result of Which

question 64

Multiple Choice

Economies of scale can occur as a result of which of the following?

• A) increasing marginal returns as the firm increases its size
• B) lower fixed cost as the firm increases its size
• C) management difficulties as the firm increases its size
• D) greater specialization of labor and capital as the firm increases its size
• E) increased total cost when the firm increases its size

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Definitions:

Future Advancement

A provision in a financial agreement allowing for additional funds or resources to be provided in the future under certain conditions or upon reaching certain milestones.

Security Agreements

Legal contracts that create a lien on assets, providing a lender with a security interest in the assets of the borrower.

Collateral

Assets pledged as security for repayment of a loan, subject to seizure on default.

Repossess Collateral

The act of taking back goods or property by a creditor or seller from the borrower or buyer due to defaults on payment terms.