Which of the Following Statements About Economies of Scale Is

question 19

Multiple Choice

Which of the following statements about economies of scale is NOT true?

• A)One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.
• B)One reason economies of scale occur is because employees become more efficient as volume increases.
• C)Economies of scale refers to the fact that as volume increases,total cost of production decreases.
• D)Economies of scale may not exist at all levels of production.

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Definitions:

Rental Expenses

Costs incurred for leasing or renting property, equipment, or other assets.

Gasoline Purchases

The act of buying gasoline, a fuel used primarily in internal combustion engines.

Major Drivers

Key factors or forces that significantly influence the direction, activity, or trends within a market or environment.

Supply Chain Performance

The evaluation of how well a supply chain operates in terms of speed, cost efficiency, and flexibility to meet customers' needs.