A footwear company specializing in the production of ballet shoes normally produces shoes for women.The company is hired by several customers to produce shoes for men.Which of the following should the manufacturer consider in order to achieve economies of scale in shoe production?

Question

Quizplus · Accepted Answer

It's often cheaper to produce large quantities of one size, and store the unsold quantity, than to have shorter production runs. Thus, storing goods allows the producer to achieve economies of scale in production.

A Footwear Company Specializing in the Production of Ballet Shoes