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Larger Firms Will Often Have Lower Minimum Per-Unit Costs Than

Question 108

Multiple Choice

Larger firms will often have lower minimum per-unit costs than smaller firms because


A) employee shirking is less of a problem.
B) large-scale output allows greater specialization for both labor and machines in the production process.
C) mass production techniques, with high setup and development costs, are appropriate only when a small output is planned.
D) all of the above are correct.

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