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18 February, 11:25

Economies of scale give an advantage to what type of company? (Select the best answer.)

Question 25 options:

A company with a small number of employees

A company that makes many sales

A company with many variable costs

A service-based company

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Answers (1)
  1. 18 February, 15:21
    0
    A company that makes many sales

    Explanation:

    Economies of Scale refer to the cost advantage, a firm experience when it increases its level of output. This advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.
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