The larger the minimum efficient scale of a plant,the greater the argument for centralizing production in a single location or a limited number of locations is the implication of the _____________ concept.

Question

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The concept being referred to is the economies of scale. When the minimum efficient scale of a plant is larger, it means that a greater level of production is required to achieve economies of scale. This, in turn, implies that centralizing production in a single location or a limited number of locations is more beneficial.

The Larger the Minimum Efficient Scale of a Plant,the Greater