Larger Firms Will Often Have Lower Minimum Per-Unit Costs Than

question 108

Multiple Choice

Larger firms will often have lower minimum per-unit costs than smaller firms because

• A) employee shirking is less of a problem.
• B) large-scale output allows greater specialization for both labor and machines in the production process.
• C) mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
• D) all of the above are correct.