Leo wants to improve the costs for his business, so he chooses to buy inputs in bulk and manufacture products in larger quantities.This is an example of
A)economic forces.
B)demographic forces.
C)potential competitors.
D)brand positioning.
E)economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale are the cost advantages associated with large operations.They result from factors such as manufacturing products in very large quantities, buying inputs in bulk, or making more effective use of organizational resources than do competitors by fully utilizing employees' skills and knowledge.

Leo Wants to Improve the Costs for His Business, So