Which of These Would Create Diseconomies of Scale

question 37

Multiple Choice

Which of these would create diseconomies of scale?

• A) ability to easily replicate a business
• B) decreasing average fixed costs
• C) bureaucracy
• D) reductions in long-run average total costs

Calculate cost of goods sold and understand its impact on profitability.

Identify and differentiate between direct and indirect costs in manufacturing.

Understand the concept of contribution margin and its calculation.

Analyze income statements to identify variable and fixed costs.

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