Which of the following is true of variable cost advantage?
A)Scale effect occurs for a manufacturer who doubles production capacity.
B)Businesses with a substantial market share advantage generally achieve a higher unit cost.
C)As volume increases,the cost per unit generally increases.
D)A larger unit volume allows for production that lowers the per-unit manufacturing cost,thereby creating a scope effect.
E)As a business builds more of the same product,there is a greater opportunity for scale effects.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true of variable cost advantage?
A)Scale effect occurs for a manufacturer who doubles production capacity.
B)Businesses with a substantial market share advantage generally achieve a higher unit cost.
C)As volume increases,the cost per unit generally increases.
D)A larger unit volume allows for production that lowers the per-unit manufacturing cost,thereby creating a scope effect.
E)As a business builds more of the same product,there is a greater opportunity for scale effects.

Which of the Following Is True of Variable Cost Advantage