A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably step up production to 2,000 cell phones a day Consequently, it built a larger plant and installed efficient machinery and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information?

A) The unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per day.
B) A production plant with the capacity of producing 5,000 cell phones a day would be most efficient.
C) The unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.
D) A 2,000-capacity production plant would be less efficient because of increasing diseconomies of scale.
E) The fixed costs of the firm are more likely to increase with the increase in output.


C

Business

You might also like to view...

Janice, Carlotta, and ________ are studying for our midterm together

A) myself B) me C) I D) my self c

Business

If a taxpayer pays for an annuity contract with after-tax dollars, all payments received under the contract will be tax-free until the original cost is recovered.

Answer the following statement true (T) or false (F)

Business

A credit sale of $5,275 to a customer would result in which of the following?

A. A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger. B. A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger. C. A credit to Sales and a credit to the customer's account in the accounts receivable subsidiary ledger. D. A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable subsidiary ledger. E. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable subsidiary ledger.

Business

Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer

a. True b. False Indicate whether the statement is true or false

Business