Which of the Following Is Most Likely an Example of Diseconomies

question 60

Multiple Choice

Which of the following is most likely an example of diseconomies of scale?

• A) The per-unit costs on Excel Publishing Company's manuals fell after it received 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 capacity by 25 percent and experienced a 30 percent increase in its total cost.

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Definitions:

Utility Companies

Businesses that provide essential services such as water, electricity, and gas to homes and companies.

Purchase Services

The act of buying services rather than physical goods from a provider or vendor.

Receive Bill

The act of getting an invoice or bill from a vendor that outlines the amount owed for goods or services received.

Create Purchase Order

The process of generating a document that authorizes a purchase transaction for goods or services from a supplier.