Which of the Following Is a Difference Between Firms That

question 24

Multiple Choice

Which of the following is a difference between firms that have high scalability and firms that have low scalability

• A) Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs.
• B) Firms with high scalability have variable costs as 80 to 85 percent of total costs, whereas firms with low scalability have variable costs as zero to five percent of total costs.
• C) Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.
• D) Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin.

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Definitions:

Quantitative

Quantitative refers to a type of information or data that can be measured and expressed numerically, often used in research to quantify behaviors, opinions, or other defined variables.

Popular

Liked, admired, or enjoyed by many people or by a particular person or group.

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and to their environments.

General Public

A term referring to the unorganized, broad group of people in society who do not belong to particular subgroups or professions; the average people.