The Transition from Economies of Scale to Diseconomies of Scale

question 18

Multiple Choice

The transition from economies of scale to diseconomies of scale:

• A) is more likely to occur in a service operation.
• B) is more likely to occur in a manufacturing operation.
• C) is more likely to occur when utilization is low.
• D) contains the point at which average unit costs are at their lowest.

---

Definitions:

Variance

A measure of dispersion that indicates the average squared deviation of each number in a set from the mean of the set.

Population

The entire pool from which a statistical sample is drawn and about which inferences are made.

Sample

A subset of a population used in statistical analysis to approximate the characteristics of the entire population.

Crude Oil Prices

The cost per barrel of crude oil, which fluctuates based on market conditions, supply, and demand.