Asked by
Anaid Sanchez
on Oct 25, 2024
Verified
The scale economies index (SCI) is equal to:
A) the cost-output elasticity.
B) one minus the cost-output elasticity.
C) 100 times the degree of economies of scope (SC) .
D) marginal cost divided by average cost.
Scale Economies Index
A measure of the cost advantages that enterprises obtain due to their scale of operation, typically associated with cost per unit of output decreasing with increasing scale.
Cost-Output Elasticity
A measure of how the total cost of production responds to a change in the quantity of output produced.
- Master the concept of how production efficiency is influenced by the dynamics of average and marginal cost curves.
Verified Answer
CC
Learning Objectives
- Master the concept of how production efficiency is influenced by the dynamics of average and marginal cost curves.