Economies of Scale Arise from Which of the Following Sources

question 37

Multiple Choice

Economies of scale arise from which of the following sources?

• A) Increasing fixed costs by limiting them to small volumes.
• B) Serving domestic and international markets from the same production facilities.
• C) Serving only domestic markets.
• D) Bargaining with distributors to drive up the product costs.

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Definitions:

Methane

A potent greenhouse gas with a chemical formula CH4, produced by anaerobic decomposition of organic materials and other processes.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, known for its pungent smell and used in various industrial processes.

Valles Marineris

A vast canyon system on the planet Mars, stretching about 4,000 kilometers and known as one of the largest canyon systems in the Solar System.

Kilometers

A unit of measurement equal to 1,000 meters, commonly used to measure distances between geographical locations.