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    Operations Management Study Set 5
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    Exam 5: Strategic Capacity Planning for Products and Services
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    If the Output Rate Is Increased but the Average Unit
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If the Output Rate Is Increased but the Average Unit

Question 136

Question 136

Multiple Choice

If the output rate is increased but the average unit costs also increase, we are experiencing:


A) market share erosion.
B) economies of scale.
C) diseconomies of scale.
D) value-added accounting.
E) step-function scaleup.

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