Which of the following describes a situation in which, as the level of production of a good or service increases, the average cost of producing each individual unit decreases?
a. Arbitrage
b. Economies of scale
c. Privatization
d. Deindustrialization
b
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Which of the following describes a demand curve?
a. It is a horizontal line. b. It slopes downward from left to right. c. It slopes downward from right to left. d. It is bow-shaped.
Consider Figure 8.9. Relative to the dominant strategy outcome, guaranteed price fixing would lead to:
A. lower prices but higher profits. B. lower prices and lower profits. C. higher prices and higher profits. D. higher prices and lower profits.
The smallest single component of M1 is:
A. demand deposits. B. savings account balances. C. other checkable deposits. D. traveler's checks.
The intensity of competition in a market can be ________ to inspire a business to undertake innovative activities.
A. too low B. too great or too low C. too great D. not low enough or not great enough