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:

Ovule

Of seed plants, reproductive structure in which the female gametophyte forms and develops. Matures into a seed after fertilization.

Seed

Embryo sporophyte of a seed plant packaged with nutritive tissue inside a protective coat.

Ovary

An organ in female animals where eggs or ova are produced; in flowering plants, it is part of the pistil where ovules are produced.

Seed Germination

The process by which a seed begins to grow and develop into a new plant, often triggered by water absorption and favorable temperature conditions.