Asked by tabatha nieves on May 05, 2024
Verified
A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:
A) economies of scale.
B) diseconomies of scale.
C) increasing opportunity costs.
D) scale reduction.
Economies of Scale
The reduction in per-unit production costs resulting from an increase in the scale of production.
Service Provider
A company or an individual that offers services to others in exchange for payment, such as telecommunications, utilities, or healthcare.
Opportunity Costs
The cost of the most favorable alternative that is lost by deciding on a particular option.
- Attain knowledge about the concepts of economies of scale, constant returns to scale, and diseconomies of scale.
Verified Answer
Learning Objectives
- Attain knowledge about the concepts of economies of scale, constant returns to scale, and diseconomies of scale.
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