If It Is True That Handling the Mail Does Not

question 5

Multiple Choice

If it is true that handling the mail does not get cheaper as the volume of mail increases, which of the following best explains this fact?

• A)The Post Office is run by the government and therefore is inefficient.
• B)The rule "the bigger the volume, the lower the cost" is true only if other things remain the same; since technological knowledge changes constantly, the cost of handling mail need not fall.
• C)Although the rule "the bigger the volume, the lower the cost" is true of most industries, it is not true of all of them.
• D)The rule "the bigger the volume, the lower the cost" is true only up to a point, beyond which costs rise.
• E)The rule "the bigger the volume, the lower the cost" generally applies only to private industry.