Which of the Following Is True of Variable Cost Advantage

question 23

Multiple Choice

Which of the following is true of variable cost advantage?

• A)Scale effect occurs for a manufacturer who doubles production capacity.
• B)Businesses with a substantial market share advantage generally achieve a higher unit cost.
• C)As volume increases,the cost per unit generally increases.
• D)A larger unit volume allows for production that lowers the per-unit manufacturing cost,thereby creating a scope effect.
• E)As a business builds more of the same product,there is a greater opportunity for scale effects.

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