Related to the Economics in Practice on page 196. The search engine business is subject to ________, which means that as the use of the search engine increases, the long-run cost to provide additional searches on that search engine will likely fall.
A) diminishing returns
B) economies of scale
C) diseconomies of scale
D) significant government regulation

Question

Quizplus · Accepted Answer

The correct answer is economies of scale. This economic principle suggests that as the production level increases, the cost per unit of production decreases. In the context of a search engine business, as more people use the search engine, the cost of providing additional searches decreases because the infrastructure and technology to support these searches become more cost-effective at larger scales.

Related to the Economics in Practice on Page 196