If a firm wants to capitalise on economies of scale, it may be able to do so by:
A)giving its employees a limited task that they can master
B)employing a larger number of workers
C)producing a larger quantity of output
D)doing all of the above

Question

Quizplus · Accepted Answer

Economies of scale are achieved by optimizing production processes to reduce costs per unit as output increases. This can be done through specialization of labor (A), increasing the workforce to boost production capacity (B), and directly increasing the volume of production (C). All these actions contribute to economies of scale.

If a Firm Wants to Capitalise on Economies of Scale