Economies of Scale

Multiple Choice

Economies of scale:

A) are known as decreasing costs or increasing returns to scale.
B) are internal to the firm if the expansion of the size of the firm itself is the basis from the decline in its average costs.
C) are external to the firm when a firm's average costs fall as the output of the entire industry rises.
D) are unrelated to intra-industry trade.
E) All of the above