Which One of the Following Is NOT a Reason Why

question 69

Multiple Choice

Which one of the following is NOT a reason why there are economies of scale?

• A) Spreading fixed costs, such as depreciation and debt service, over more units
• B) Finding process advantage by dedicating resources to individual products
• C) Reduced construction costs by building smaller facilities
• D) Better bargaining position and quantity discounts on purchased materials

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Definitions:

Unilateral Contracts

Agreements in which one party makes a promise in exchange for the other party's performance, not a promise in return.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.

Revocation

The act of withdrawing, repealing, or cancelling a right, permission, or contract.

Effective Acceptance

The expression of assent to the terms of an offer in a manner requested or authorized by the offeror, resulting in a binding contract.