Question

Ray started out with one small print shop. his business has grown so much that he now has two other branches across town. ray has found that having three locations has greatly increased his production levels. he also notices that the price he pays for supplies (paper, ink, and packaging materials) has gone down considerably since he can now buy these items in bulk quantities. this exemplifies the principle known as:________.a. empowerment. b. unity of command. c. bureaucracy. d. economies of scale.

Answer 1

Option D Economies of Scale.

Step-by-step explanation:

The reason is that now he is able to control the costs due to his bulk production which brings economies of scale. This economies of scale is due to bulk production and increased bargaining power. The supplier don't want you to leave him and so restrain you to go he gives you additional benefits in the shape of bulk discounts. This bulk discounts helps you to keep the cost as low as possible and decrease the cost to add a competitive advantage to win the market. So the right option here is economies of scale.