Which of the Following Explain Why Cost Reduction Occurs in the Context

question 10

Multiple Choice

Which of the following explain why cost reduction occurs in the context of scope economies?

• A) high production volumes.
• B) high production volumes and similarities in the resource requirements for different products.
• C) high production volumes and the tendency of the firm to fully exploit its existing resources.
• D) similarities in resource requirements for different products, as well as the tendency of the firm to fully exploit its existing resources.

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Definitions:

Routes Filled

The successful assignment or completion of pathways or delivery channels according to plan or schedule.

Dummy Sources

Artificial shipping source points created when total demand is greater than total supply to effect a supply equal to the excess of demand over supply.

Transportation Problem

A logistical dilemma involving the determination of the most cost-efficient routing of goods from several supply points to various demand locations.

Routes

The paths or courses taken to get from one location to another, often used in logistics, navigation, and network design.