Final answer:
Organizations using large-batch technology can benefit from economies of scale, but this is challenged by new technologies enabling efficiency at smaller scales.
Step-by-step explanation:
The correct answer is that organizations which use large-batch technology tend to benefit from economies of scale, meaning that as their quantity of output increases, the cost per unit decreases. This concept is similar to what "warehouse stores" like Costco or Walmart experience.
Large production technologies allow organizations to operate on a scale that can potentially lead to a lower average cost in comparison to smaller operations.
However, this isn't always the case as new production technologies can disrupt this trend. For example, small-scale high-efficiency turbines for electricity generation and automated small-capacity tire plants like Pirelli's have shown that new technologies can enable smaller firms to operate as efficiently as larger ones.
Additionally, with the advent of improved information and communication technologies, the management of various operations and plants across different locations has become easier, potentially supporting the growth of larger firms.
There is a debate over whether these technologies will result in a higher number of small competitors or lead to 'winner-take-all' markets dominated by large firms.
This conversation is ongoing among economists, businesspeople, and policymakers, with no definitive answer as various industries may experience different outcomes based on their unique factors and the technologies they adopt.