Which of the Following Physical Relationships Might Generate Economies of Scale

question 169

Multiple Choice

Which of the following physical relationships might generate economies of scale?

• A) Proportionally larger pipes can transport more than a proportional increase in oil.
• B) Larger equipment tends to weigh more and use more fuel on a per-unit-of-output basis.
• C) Each lift truck requires one lift truck driver.
• D) A doubling of all inputs leads to a doubling of output.

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