A larger production volume allows for production and purchasing economies that lower the unit cost of a product,thereby producing a ________ effect.
A)scale
B)scope
C)cluster
D)network
E)Mohring

Question

Quizplus · Accepted Answer

The scale effect refers to the cost savings achieved through an increase in production volume, which leads to lower unit production costs.

A Larger Production Volume Allows for Production and Purchasing Economies