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.
Correct Answer:
Verified
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