A company benefits from economies of scale when it ________.
A) does not use centralization of production and distribution
B) produces goods or services in multiple locations
C) adopts a highly differentiated marketing strategy
D) engages in the production of personalized products
E) manufactures and distributes products in higher quantities

Question

Quizplus · Accepted Answer

A)Purchasing, manufacturing, and distributing higher quantities will enable companies to produce goods and services at lower costs. This occurrence is referred to as economies of scale.
B)Purchasing, manufacturing, and distributing higher quantities will enable companies to produce goods and services at lower costs. This occurrence is referred to as economies of scale.
C)Purchasing, manufacturing, and distributing higher quantities will enable companies to produce goods and services at lower costs. This occurrence is referred to as economies of scale.
D)Purchasing, manufacturing, and distributing higher quantities will enable companies to produce goods and services at lower costs. This occurrence is referred to as economies of scale.
E)Purchasing, manufacturing, and distributing higher quantities will enable companies to produce goods and services at lower costs. This occurrence is referred to as economies of scale.

A Company Benefits from Economies of Scale When It ________