Whenever the Same Investment Can Support Multiple Profitable Activities Less

question 35

Multiple Choice

Whenever the same investment can support multiple profitable activities less expensively in combination than separately,it is said the following exists:

• A)economies of scale
• B)economies of scope
• C)lowest unit cost pricing
• D)diseconomies of scale

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Definitions:

Price Level

The median price level of all goods and services currently offered in the economy.

Previous Year

The 12-month period immediately before the current year, used as a reference point for comparing data or statistical analysis.

Unemployment

The situation where individuals who are willing and able to work are not currently employed.

Inflation

The magnitude of growth in the overall price points for goods and services, weakening the efficacy of spending power.