The Partnering for Success feature in Chapter 8 focuses on buying groups, and recommends that small businesses seek out buying groups to participate in. What is a buying group in the context of the feature?
A) A partnership that bands small businesses together to attain volume discounts on common products and services that they buy
B) A partnership that bands small businesses together to collectively make the commitment to buy local at every available opportunity
C) A partnership that bands small businesses together to get the best prices possible from foreign importers and manufacturers
D) A partnership that bands small businesses together to get the best possible terms from finance companies
E) A partnership that bands small businesses together to get the best possible rates on property and liability insurance
Question 2
Economies of scale occur when ________.
A) increasing production lowers the average cost of each unit produced
B) increasing production increases the average cost of each unit produced
C) decreasing production lowers the average cost of each unit produced
D) decreasing production increases the average cost of each unit
E) increasing production increases the fixed cost of doing business
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