Which economic concept explains why a large drugstore chain can produce at a lower average cost than Whoville Pharmacy, an individually owned drugstore?
a. increasing marginal returns
b. diminishing marginal returns
c. economies of scale
d. diseconomies of scale
e. constant returns to scale
Question 2
Economies of scale occur where
a. long-run average cost falls as new firms enter the industry
b. short-run average cost falls as new firms enter the industry
c. long-run average cost falls as one firm expands plant size
d. short-run average cost falls as one firm expands plant size
e. long-run average cost rises as one firm expands plant size
Albatrosses, of the biological family Diomedeidae, are large seabirds
Nursing Concept
The proboscis monkey demonstrates that large gut size contributes to a lower EQ.
Economic and Social Development
How to use the chain rule to find the derivative of a function
Accumulation of toxicants over time and up the food chain