Victoria quits her job managing an independently owned restaurant to take a new job managing a chain of restaurants. She discovers that, because her new employer buys so much food and so many other supplies, the cost per item is much less. These cost advantages are the result of
A)brand loyalty.
B)economies of scale.
C)boundary spanning.
D)power distance.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a business can achieve by producing or purchasing goods or services in large quantities. In this case, Victoria's new employer is able to purchase food and other supplies at a lower cost per item because they buy in bulk.

Victoria Quits Her Job Managing an Independently Owned Restaurant to Take