Question

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

Answer 1

A company that makes many sales

Step-by-step 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.