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Which of the following best describes how the introduction of automated assembly lines can affect a small manufacturer’s cost structure?

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MCQ

Type

practice

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Topic

The purpose and nature of businesses

Exam-style question

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Which of the following best describes how the introduction of automated assembly lines can affect a small manufacturer’s cost structure?.

  1. A.Increase fixed costs, reduce variable costs, lower total cost
  2. B.Increase variable costs, reduce fixed costs, increase total cost
  3. C.Increase fixed costs, increase variable costs, increase total cost
  4. D.Reduce fixed costs, increase variable costs, reduce total cost

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