Which of the Following Statements Is True About Economies of Scale

question 17

Multiple Choice

Which of the following statements is true about economies of scale?

• A)Economies of scale lead to an increase in the average unit cost of a product.
• B)Attaining economies of scale increases a firm's profitability.
• C)The ability to spread variable costs over a large volume is a source of economies of scale.
• D)Economies of scale result due to the increase in the perceived value of a product.
• E)Economies of scale refer to cost savings that come from learning by doing.

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Definitions:

Authentic Leader

A leader who is genuine, transparent, and ethical, and who leads with their true self.

Competing Preferences

Situations in which individuals or groups have differing desires or choices that are in conflict with one another.

Unethical Behavior

Actions or decisions that violate moral or professional principles, often for personal gain or advantage.

Competition For Rewards

A situation where individuals or teams vie for recognition, compensation, or other incentives offered for achieving certain goals or performance standards.