Question: 9 5 L 0 4 - 6 1 6 . A process has high fixed costs and low variable costs. It is currently capacity -

95
L04-6
16. A process has high fixed costs and low variable costs. It is currently capacity-constrained. Will the impact of an efficiency improvement be small or large?
a. Small
b. Large
17. A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency improvement be small or large?
a. Small
b. Large
18. When an operation improves its efficiency, its revenue will always stay constant, while its costs will go down. True or false?
a. True
b. False
95 L04-6 16. A process has high fixed costs and low

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