Which of the Following Is an Accurate Statement About Economies

question 29

Multiple Choice

Which of the following is an accurate statement about economies of scale?

• A)Production costs per unit are less in a large facility than in a small facility
• B)The more product a company makes,the lower its variable production costs
• C)Economies of scale are identical to throughput
• D)Doubling factory size typically doubles fixed costs
• E)Companies with economies of scale have high capacity utilization

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Definitions:

Organic Structure

The arrangement of atoms within a molecule that is primarily composed of carbon and hydrogen, characterizing organic compounds.

Salt Deposits

Concentrations of salt left behind when water evaporates, forming layers underground or on the surface.

Less Dense

Describes a lower mass per unit volume of a substance, often causing it to float atop more dense materials.

Continental Crust

The thick part of the Earth's crust that forms the large landmasses, typically composed of less dense rocks like granite.