Figure 7.4.2
-The cost-output elasticity is used to measure:
A) economies of scope.
B) economies of scale.
C) the curvature in the fixed cost curve.
D) steepness of the production function.

Question

Figure 7.4.2
-The cost-output elasticity is used to measure:
A) economies of scope. 
B) economies of scale. 
C) the curvature in the fixed cost curve. 
D) steepness of the production function.

Quizplus · Accepted Answer

The cost-output elasticity is used to measure economies of scale, which is the relationship between the size of production and the average cost of production.

Figure 7.4.2 -The Cost-Output Elasticity Is Used to Measure