Question 9 Which of the following are sources of good projects? Question 9 options: Economies of scale Cost advantages Capital requirements Product differentiation All of the above
All of the above.
Because economies of scales help in attaining minimum cost per unit
by increasing the size of operations. Cost advantage also helps in
identifying good projects as it will make the product more
competitive in the market on the basis of price. Capital
requirement helps in identifying the initial investment, the
depreciation and the tax benefits for the depreciation. Product
differentiation helps in creating a competitive edge for the
products making it economically feasible.
Best of Luck. God Bless
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