Bulk-Breaking

question 276

Multiple Choice

Bulk-breaking

• A) means putting together a variety of products to give a target market what it wants.
• B) involves collecting products from many small producers.
• C) involves dividing larger quantities into smaller quantities as products get closer to the final market.
• D) means separating products into grades and qualities desired by different target markets.
• E) is most important with specialized producers of professional services.

---

Definitions:

Diseconomies of Scale

The situation in which a firm's long-run average costs begin to increase as the firm expands output beyond a certain point.

Student Enrollment

The process by which students register for and commit to participating in educational programs or courses at an institution.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced.

Minimum Efficient Scale

The smallest quantity of output at which long-run average cost reaches its lowest level, allowing a firm to fully exploit economies of scale.