Which of the following statements is FALSE regarding reasons for economies of scale? a Complexity increases...
Which of the following statements is FALSE regarding reasons for economies of scale?
a Complexity increases costs
b Fixed costs are spread over more units, reducing the fixed cost per unit
c Construction costs increase at a decreasing rate with respect to the size of the facility to be built
d Processing costs decrease as output rate increases because operations become more standardized, which reduces unit costs
Homework Answers
Economies of scales means products are produced in huge volumes to reduce the costs. Mostly standard products are produced in huge quantities.
Products produced to realise economies of scale are not complex. Therefore, the following is false
Complexity increases costs
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