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    Economies of Scale

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    When are economies of scale most important?

    a. When there are more than 100 employees in the firm
    b. When the minimum efficient scale to produce the product is large compared to the size of the market
    c. When combining dissimilar businesses under common ownership
    d. When there is proprietary technology.

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    Solution Preview

    B is correct because in such a situation, the firm producing the product need to have a ...

    Solution Summary

    Economies of Scale importance are examined. Proprietary technology is examined.