Consider a Coles Hypermaket and a 7-Eleven Store

Multiple Choice

Consider a Coles hypermaket and a 7-Eleven store. In the long run,

A) the 7-Eleven store will definitely have lower average costs because their small stores are cheaper to build.
B) Coles or 7-Eleven may have economies of scale depending on how many customers are served.
C) Coles average total cost will decline faster than the 7-Eleven store and experience diseconomies of scale.
D) Coles will definitely have lower average costs because hypermarkets serve many more customers.
E) the 7-Eleven store's average total cost will be lower than Coles and always experience economies of scale.