Five years ago it cost Bernie’s Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities.What allowed the company to reduce the price to build a bike? A.trade deficit B.product differentiation C.trade surplus D.economies of scale

It is given that five years ago, the cost to build a single bike is $52 and it is $31 at present.…

Answered: Five years ago it cost Bernie’s Bikes…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Five years ago it cost Bernie’s Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities.What allowed the company to reduce the price to build a bike?

A.
trade deficit

B.
product differentiation

C.
trade surplus

D.
economies of scale

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