Companies strive to decrease their costs and reduce their selling prices through economies of scale and standardization of finished products, among other possibilities.

Question

Quizplus · Accepted Answer

Economies of scale allow companies to reduce costs by producing goods in large quantities, leading to lower costs per unit. Standardization of products can further reduce costs by simplifying production processes, inventory management, and distribution, enabling companies to offer lower selling prices.

Companies Strive to Decrease Their Costs and Reduce Their Selling