IF A FIRM EXPERIENCE DECREASES IN THE PER-UNIT COSTS OF PRODUCTION AS ITS NETWORK INCREASES, THEN THIS FIRM IS EXPERIENCING: A. ECONOMIES OF SCOPE. B. ECONOMIES OF SCALE. C. NETWORK EXTERNALITIES. D. DIFFERENTIATION.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 8MC: Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up...
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If a firm experience decreases in the per-unit costs of production as its network increases, then this firm is experiencing:

IF A FIRM EXPERIENCE DECREASES IN THE PER-UNIT COSTS OF PRODUCTION
AS ITS NETWORK INCREASES, THEN THIS FIRM IS EXPERIENCING:
A. ECONOMIES OF SCOPE.
B. ECONOMIES OF SCALE.
C. NETWORK EXTERNALITIES.
D. DIFFERENTIATION.
Transcribed Image Text:IF A FIRM EXPERIENCE DECREASES IN THE PER-UNIT COSTS OF PRODUCTION AS ITS NETWORK INCREASES, THEN THIS FIRM IS EXPERIENCING: A. ECONOMIES OF SCOPE. B. ECONOMIES OF SCALE. C. NETWORK EXTERNALITIES. D. DIFFERENTIATION.
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