Which of the following are not true about economies of scale?
A) Spreading fixed costs over increasing production levels
B) Improve the overall cost position of the firm
C) Most common in manufacturing businesses
D) Most common in businesses whose costs are primarily variable
E) Are common to such industries as utilities, steel making, pharmaceutical, chemical and aircraft manufacturing

Question

Quizplus · Accepted Answer

Economies of scale are most common in businesses whose costs are primarily fixed, not variable.

Which of the Following Are Not True About Economies of Scale