If Honda noticed that the unit costs of Honda Accords went down as the number of Accord's produced went up,Honda would be realizing the benefits of _______________.
A) captured savings
B) volume synergies
C) economies of scale
D) rent effects
E) learning effects

Question

Quizplus · Accepted Answer

Economies of scale refer to the phenomenon whereby the cost of producing a product decreases as the volume of production increases. This is due to factors such as increased efficiency in production processes, greater bargaining power with suppliers, and spreading fixed costs over a larger output. Therefore, if Honda noticed that the unit cost of producing Honda Accords decreased as the number of units produced increased, this would indicate that they have achieved economies of scale.

If Honda Noticed That the Unit Costs of Honda Accords