Which of the Following Statements Is True of Cost Advantage

question 1

Multiple Choice

Which of the following statements is true of cost advantage?

• A)Large firms are guaranteed to secure a wide cost advantage.
• B)Size and scale do not always guarantee a cost advantage.
• C)Firms with high production volumes are sure to gain a cost advantage.
• D)Firms which produce standardized products have a cost advantage.

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Definitions:

Maker

In financial terms, the party that promises to pay a certain amount of money in a promissory note or check.

Signature Liability

The legal responsibility that comes from the act of signing a document, indicating agreement or consent to its terms and conditions.

Liable

Responsible by law; legally answerable for one's actions or inactions.

Personally

Refers to something done by a person directly, without the involvement of anyone else or any intermediaries.