Economies of Scale Arise from All of the Following Sources

question 78

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:

Competitors

Businesses or individuals in the same industry that vie for the same customer base or market share.

Exchange

The act of trading goods, services, or resources between parties, typically in a way that benefits both sides.

Service

Intangible activities or benefits provided to consumers, including assistance, experience, or access, that satisfy a need or want.

Online

Pertaining to activities, transactions, or services carried out over the Internet or connected to being accessible or available through the internet.