"Economies of Scale" Means That

question 331

Multiple Choice

"Economies of scale" means that:

• A) as a company produces larger numbers of a particular product, the cost of each unit of the product goes down.
• B) the more producers there are in an economy the greater the need for intermediaries.
• C) larger countries enjoy more economic growth than smaller countries.
• D) as a company produces larger numbers of a particular product, the total cost of producing these products goes down.

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Definitions:

Cross-functional Team

A group comprised of members from different functional areas of an organization, working together towards a common goal.

Salable Products Services

Products and services that are appealing to consumers and capable of being sold in the marketplace.

New-product Development Process

The series of steps from idea generation to market launch that companies follow to create and introduce a new product.

Business Opportunities

Opportunities in the market where products, services, or business practices can be introduced or improved for potential profit and growth.