Economies of Scale Occur When the Per-Unit Cost of Production

question 40

Multiple Choice

Economies of scale occur when the per-unit cost of production falls as a firm's output increases.How is this commonly achieved?

• A) when the company suffers from a dip in the demand for its products or services
• B) when the company has certain fixed costs that do not change with the rise or fall in units produced
• C) when the company has a predetermined order of tasks to be completed
• D) when the managers of a company have an autocratic approach to leadership

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Organization Development

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