The list of the major factors that create economies of scale includes all of the following except:
A) specialization and division of labor.
B) quantity discounts.
C) an increase in demand for the firm's output.
D) the use of automation devices.
C
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Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's economic profits are a. $160,000. b. $150,000. c. $135,000. d. $125,000.
Transactions costs are defined to be the:
A. costs a buyer or seller incurs to make a transaction take place. B. taxes they pay when purchasing a good or service. C. fees they are charged if they purchase a good or service on credit. D. costs a buyer faces if they re-sell a good or service.