Which of the Following Is True of Variable Cost Advantage

Multiple Choice

Which of the following is true of variable cost advantage?

A) Scale effect occurs for a manufacturer who doubles production capacity.
B) Businesses with a substantial market share advantage generally achieve a higher unit cost.
C) As volume increases,the cost per unit generally increases.
D) A larger unit volume allows for production that lowers the per-unit manufacturing cost,thereby creating a scope effect.
E) As a business builds more of the same product,there is a greater opportunity for scale effects.