Achieving Economies of Scale Is an Important Cost Driver for Certain

question 88

Multiple Choice

Achieving economies of scale is an important cost driver for certain low-cost leaders.However,there is a saying that "sometimes bigger is worse" because at some point costs increase as output increases.This is referred to as:

• A) External economies
• B) Diseconomies of scale
• C) Economic inefficiencies
• D) Integration diseconomies

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Definitions:

Exposure

The state of being subject to the possibility of being attacked or harmed, either physically or emotionally, or in the context of marketing, the degree to which a target audience sees a promotional message.

Immediate Consequences

The direct and prompt outcomes or effects following an action or decision.

Loss Of Resources

The depletion or diminishing of assets, values, or capabilities, whether tangible or intangible, that were previously available.

Reflective Analysis

An introspective examination of one's own thoughts, feelings, and actions, often to improve understanding or performance.