Which of the Following Statements Regarding Economies of Scale and Scope

Multiple Choice

Which of the following statements regarding economies of scale and scope is FALSE?

A) Cost-reduction synergies are hard to predict and achieve.
B) Because the CEOs of small firms receive information so quickly,small firms are often able to react in a timely way to changes in the economic environment.
C) Synergies usually fall into two categories: cost reductions and revenue enhancements.
D) There may also be costs associated with the size of large enterprises.