Ahmed is CEO of Cook-Rite,a company that manufactures kitchen appliances.Recently he decided to add a third shift to help lower the company's per-unit production costs.What business strategy is Ahmed implementing?
A) outsourcing
B) economy of scale
C) mechanization
D) hybridization

Question

Quizplus · Accepted Answer

Ahmed is implementing the economy of scale business strategy by adding a third shift to lower the company's per-unit production costs. This is because the increased production volume would spread out fixed costs over a larger number of units, resulting in a lower per-unit cost of production.

Ahmed Is CEO of Cook-Rite,a Company That Manufactures Kitchen Appliances