Which One of the Following Statements Explaining Some Aspect of Economies

question 40

Multiple Choice

Which one of the following statements explaining some aspect of economies of scale is best?

• A) A larger facility usually has a smaller total fixed cost.
• B) With higher volumes, the process shifts toward flexible flows, with resources dedicated to individual products.
• C) A 100- bed hospital costs more to build than twice the cost of a 50- bed hospital.
• D) Dedicating resources to individual products reduces changeovers and setups.

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