Economies of scale arise from all of the following sources, EXCEPT A. serving domestic and international...
Economies of scale arise from all of the following sources, EXCEPT
A. serving domestic and international markets from the same production facilities
B. serving global markets
C. increasing fixed costs by limiting them to small volumes
D. bargaining with suppliers to bring down the cost of key inputs
Homework Answers
1. C. Increasing fixed costs by limiting them to small volumes.
We can say that the benefit of economies of scale would be
limited if we increase our fixed cost and limit the volume to small
quantities. Economies of scale is beneficial when we increase our
level of production.
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Economies of scale arise from all of the following sources,
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