If market geography and market size are both increasing,the average cost of serving buyers is sure to:
A) Increase.
B) Decrease.
C) Remain the same.
D) Cannot be determined with the information provided.
E) Increase at a faster rate than additional revenues.

Question

Quizplus · Accepted Answer

The impact on the average cost of serving buyers when both market geography and market size are increasing cannot be determined without additional information. Factors such as economies of scale, transportation costs, and the efficiency of distribution networks can influence the outcome in different ways.

If Market Geography and Market Size Are Both Increasing,the Average