Which of the Following Statements Accurately Relates to Economies of Scale

question 19

Multiple Choice

Which of the following statements accurately relates to economies of scale? Choose all that apply.

• A) The introduction of a new supplier generally encourages economies of scale.
• B) Economies of scale occur whenever a new product enters the market.
• C) Economies of scale relating to distribution are particularly important in the drinks and food industries.
• D) Economies of scale are particularly important in industries such as motor manufacturing.

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Definitions:

Laminated Oak

Wood made from layers of oak that are bonded together, often used for its strength and aesthetics in flooring and furniture.

Van Trailer

A type of trailer enclosed by walls, designed to transport goods protected from the elements and theft, commonly pulled by trucks.

Screw Size

Refers to the nominal diameter, thread pitch, and length specified for screws, crucial for compatibility and strength in assemblies.

Reefer

A refrigeration trailer.