When Company X Increases Its Production Volume by 1%,the Firm's

question 1

Multiple Choice

When Company X increases its production volume by 1%,the firm's total cost of production increases by less than 1%.This is an example of ________.

• A) diseconomies of scale
• B) economies of scale
• C) the supply chain
• D) the value chain

---

Definitions:

Intangible Assets

Long-term assets that are useful in the operations of a business, are not held for sale, and are without physical qualities.

Gross Profit Margin

A financial ratio that shows the percentage of sales revenue remaining after deducting the cost of goods sold from total sales revenue.

Vertical Analysis

A financial statement analysis method that shows the relationship of each component to a total within a single statement, expressed as a percentage.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead expenses.