A University That Benefits from Lower Costs Per Unit as It

question 22

Multiple Choice

A university that benefits from lower costs per unit as it grows is an example of:

• A) economies of scale.
• B) diseconomies of scale.
• C) increasing opportunity costs.
• D) scale reduction.

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Definitions:

FOB Destination

A shipping term indicating the seller bears freight charges and retains ownership until goods are delivered to the buyer.

Freight Costs

Expenses associated with transporting goods from one place to another.

September

Refers to the ninth month of the year in the Gregorian calendar.

Inventory Cost

The total cost associated with buying or producing goods, including purchase price, materials, labor, and overhead, until they are sold.