Question

In the case of a retail business dependent on drive-in customers, what is the major cost disadvantage independent of scale?

1) High advertising costs
2) High labor costs
3) High rent costs
4) High inventory costs

Answer 1

High rent costs is the major cost disadvantage independent of scale for a retail business dependent on drive-in customers.

Step-by-step explanation:

In the case of a retail business dependent on drive-in customers, the major cost disadvantage independent of scale is High rent costs. Rent is a fixed cost for a retail space, meaning it does not change regardless of the amount of production or sales. This can be a significant burden for a retail business, especially if they are located in a high-demand area with expensive rental prices.