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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Definitions:

Exercise Time

The duration or period during which physical activities or workouts are performed.

Line Charts

Graphical representations where data points plotted on a chart are connected by lines, typically used to track changes over time.

Variable

Something that can differ or shift, whether it's an element, trait, or influence.

Trends

Patterns or directions in data that suggest a relationship or show a general tendency over time.