Consider a Coles Hypermaket and a 7-Eleven Store

question 49

Multiple Choice

Consider a Coles hypermaket and a 7-Eleven store. In the long run,

• A) the 7-Eleven store will definitely have lower average costs because their small stores are cheaper to build.
• B) Coles or 7-Eleven may have economies of scale depending on how many customers are served.
• C) Coles average total cost will decline faster than the 7-Eleven store and experience diseconomies of scale.
• D) Coles will definitely have lower average costs because hypermarkets serve many more customers.
• E) the 7-Eleven store's average total cost will be lower than Coles and always experience economies of scale.

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