Economies of Scale isQuestion 8Answera.Buying goods at largeb.Selling Goods at largec.manufacturing at low costd.new innovative products
Question
Economies of Scale isQuestion 8Answera.Buying goods at largeb.Selling Goods at largec.manufacturing at low costd.new innovative products
Solution
Economies of Scale refers to c. manufacturing at low cost. This economic concept describes a cost advantage that businesses may gain by increasing their scale of production. The more goods produced, the lower the cost per unit due to spreading fixed costs over a larger quantity of goods.
Similar Questions
Economies of scale arise from which of the following sources? Select one: a. Serving domestic and international markets from the same production facilities b. Serving only domestic markets c. Increasing fixed costs by limiting them to small volumes d. Bargaining with distributors to drive up the product costs
Which type of economy of scale results from a firm producing a diverse range of products?1 pointA buyingB financialC risk bearingD technical
The economies of scale is determined through
What best describes diseconomies of scale?Cost advantages that larger firms often enjoySavings in costs achieved by increasing the scale of productionThe rising average cost per unit that occurs when a company increases its output beyond a certain levelThe potential profit increase due to economies of scale
What is an advantage of economies of scale?
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