Economies of Scale Arise from All of the Following Sources,except

question 84

Multiple Choice

Economies of scale arise from all of the following sources,except:

• A)increasing fixed costs by limiting them to small volumes.
• B)serving domestic and international markets from the same production facilities
• C)serving global markets.
• D)bargaining with suppliers to bring down the cost of key inputs.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, providing insights into its operational efficiency and financial health.

Consolidated Net Income

The total amount of net income earned by a parent company and its subsidiaries, presented as a single figure after eliminating inter-company transactions.

Bonds Payable

Long-term debts issued by corporations or governmental units, represented by formal certificates obligating the issuer to pay interest and repay principal at a specified maturity date.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit, typically shown as an expense on the income statement.