Which of these is an example of economies of scale?
(A) A restaurant charges customers $1 a glass for water that was once provided for free.
(B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.
(C) An Internet access company charges customers different rates for using the Internet at different times of day.
(D) A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.
Ans: (B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.
You might also like to view...
What is meant by the term "scientific method"? What are the key components of the scientific method?
What will be an ideal response?
Large increases in agricultural productivity were not the primary reasons for migrating to which area of the nation during the antebellum period?
a. Illinois and Wisconsin b. Indiana and Ohio c. The far west d. Texas and Mississippi