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Which of the Following Is True of Economies of Scale

Question 89

Multiple Choice

Which of the following is true of economies of scale?


A) It increases average unit cost by channeling fixed costs toward defined volumes.
B) A firm may not be able to attain an efficient scale of production unless it serves global markets.
C) The ability to spread variable costs over a large volume is a source of economies of scale.
D) Global sales decreases a firm's bargaining power with suppliers as they are more dependent on their services.

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