Question

choose the correct answer. economies of scale means ________. world markets are impacted by changes in market price large firms may be more efficient in producing the most good or service for the least cost monopolies producing goods and services for a market with fixed prices industry dominated by a few suppliers who exercise some control over price and quantity supplied

Explanation:

To determine the correct answer, we analyze each option:

• The first option is about market price impact on world markets, not economies of scale.
• The second option: Economies of scale refers to the cost advantage when production increases, so large firms can produce more efficiently (lower cost per unit) by producing more. This matches the definition.
• The third option describes monopolies with fixed prices, not economies of scale.
• The fourth option describes an oligopoly (few suppliers controlling price/quantity), not economies of scale.

Answer:

B. large firms may be more efficient in producing the most good or service for the least cost