Final answer:
Costco uses multiple production processes to create its diverse array of products and services, which leads to economies of scale, thereby lowering the unit cost as production quantity increases.
Step-by-step explanation:
The question concerns Costco's use of different production processes because it offers a range of products and services.
Given the varied nature of its offerings, which includes bread, soft-serve ice cream, and pizzas, in addition to services such as software programs, business financial services, and vacation travel services, Costco certainly utilizes more than one production process.
These products and services require different inputs, tools, equipment, and expertise to produce, demonstrating multiple outputs from the company.
The concept of economies of scale also applies to Costco, as this phenomena describes a situation where the cost per unit decreases as the quantity of output increases, which is common in warehouse stores like Costco due to their large scale of operation.
The inputs (or factors of production) in the production process for a pizza include ingredients, the efforts of the pizza maker, and tools and materials for cooking and serving.
Examples of ingredients include flour, water, yeast, tomatoes, spices, and cheese. The pizza maker's efforts involve rolling out the dough, adding sauce and toppings, and baking the pizza.
Tools and materials used include a peel, which is a wooden tool used to put the pizza into the oven, as well as cooking utensils and boxes for packaging.