Why Can Justifying Capacity Expansion with Economies of Scale Be

Multiple Choice

Why can justifying capacity expansion with economies of scale be dangerous?

A) It is far too specific to use as a basis for capacity decisions
B) Because volume,capacity,and process considerations are looked at individually
C) Because the common notion that unit costs will decline for larger facilities due to size is not necessarily accurate
D) It requires consideration of quality,dependability,and flexibility