The Experience Curve and / or Economies of Scale Have

question 20

Multiple Choice

The experience curve and / or economies of scale have implications for business:

• A)A firm must grow its market share to lower costs.
• B)A firm can gain market share with a lower price.
• C)If a firm can be first to market and maintain dominant market share, it will benefit from a cost advantage compared to its rivals
• D)A firm must price on the basis of current costs.

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Definitions:

Perimeter

The total distance around the edge of a geometric figure or shape.

Rectangle

A four-sided flat shape with straight sides where every interior angle is a right angle (90 degrees).

Square Meters

A metric unit of area equal to the area of a square measuring one meter on each side.

Maximum Height

The highest point or peak that an object or function reaches.