Which of the following is most likely to be an example of economies of scale?
A. The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology after receiving a large order from the government.
B. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
C. The XYZ Co. increased production 25 percent after a 30 percent increase in all inputs.
D. Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs.
Answer: A
You might also like to view...
The Glass-Steagall Act of 1933 separated commercial banks from most of their securities business
Indicate whether the statement is true or false
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If the labor market worked efficiently, then an effective minimum wage law would:
A. help those who were employed at that price. B. cause unemployment. C. hold wages higher than the equilibrium price. D. All of these statements are true.
Marginal utility can:
a. increase positively, but not negatively
b. be positive, negative, or zero
c. decrease, but not become negative
d. be positive or negative, but not zero