Which of the Following Is a Difference Between Firms That

question 24

Multiple Choice

Which of the following is a difference between firms that have high scalability and firms that have low scalability

• A) Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs.
• B) Firms with high scalability have variable costs as 80 to 85 percent of total costs, whereas firms with low scalability have variable costs as zero to five percent of total costs.
• C) Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.
• D) Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin.

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Definitions:

Behavior Modification

A psychological technique that involves changing an individual's behaviors through reinforcement, punishment, or other interventions.

Stress

A physical, mental, or emotional strain or tension that results from adverse or demanding circumstances.

Laser Technologies

Techniques and applications that utilize the properties of lasers, including cutting, engraving, communication, and medical treatments.

Competitive Pressures

The forces that compel companies to continually adapt, improve, and remain agile to maintain or enhance their position in the market.