Bethany works for a company that makes sports socks. Unlike many smaller companies, Bethany's company ships out such large quantities of sports socks that their unit cost is less than half of the competition. What does this company benefit from?

Question

Quizplus · Accepted Answer

The company benefits from economies of scale, which occur when a company produces goods in large quantities, reducing the cost per unit due to the spread of fixed costs over more units and operational efficiencies.

Bethany Works for a Company That Makes Sports Socks