Which of the Following Is Most Likely to Be an Example

question 19

Multiple Choice

Which of the following is most likely to be an example of economies of scale?

• A) The per-unit costs on Excel Publishing Company's manuals fall because it adopted a new technology after receiving a large order from the government.
• B) Alpha-Beta Inc. raised its price by 10 percent after a 5 percent increase in production costs.
• C) Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
• D) The XYZ Co. increased production 25 percent after a 30 percent increase in all inputs.

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Definitions:

Legal Obligation

A duty enforced by law that requires an individual or entity to act or refrain from acting in a certain manner.

Specified Date

A particular day designated for a certain event or action to take place.

Sourcing

The process of finding suppliers of goods or services, especially in a manufacturing or business context.

Procurement

The process of obtaining goods or services, typically for business purposes.