A Car Leasing Company That Expands Its Size by Buying

question 35

Multiple Choice

A car leasing company that expands its size by buying its competitors may run the risk of increasing production cost per unit due to:

• A) diseconomies of scale.
• B) economies of scale.
• C) diminishing returns.
• D) greater use of large-volume purchases.

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Definitions:

Cardiac Catheterization

A medical procedure used to diagnose and treat cardiovascular conditions, involving the insertion of a catheter into the heart chambers or coronary arteries.

Bicuspid Valve

A valve in the heart known as the mitral valve, that controls blood flow from the left atrium to the left ventricle.

Tricuspid

Referring to the tricuspid valve, which is located between the right atrium and right ventricle of the heart and prevents backflow of blood.

Pulmonary

Pertaining to the lungs and respiratory system.