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Economies of Scale May Arise from All but One of the Following

Question 57

Multiple Choice

Economies of scale may arise from all but one of the following. Which one is it?


A) doubling promotional expenses to expand sale more than proportionately
B) having a larger retail space can expand sales more than proportionately
C) spreading the fixed-costs of administration over more customers holds average costs down
D) government economic subsidies protect firms from competition to avoid losses.

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