Which of the Following Are Not True About Economies of Scale

question 113

Multiple Choice

Which of the following are not true about economies of scale?

• A) Spreading fixed costs over increasing production levels
• B) Improve the overall cost position of the firm
• C) Most common in manufacturing businesses
• D) Most common in businesses whose costs are primarily variable
• E) Are common to such industries as utilities, steel making, pharmaceutical, chemical and aircraft manufacturing

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