Wide product variety makes it difficult for a company to increase its production efficiency and reduce its unit costs.According to this logic,the way to increase efficiency and drive down unit costs is to:

Question

Quizplus · Accepted Answer

Producing greater product variety from a factory implies shorter production runs,which in turn implies an inability to realize economies of scale.That is,wide product variety makes it difficult for a company to increase its production efficiency and thus reduce its unit costs.According to this logic,the way to increase efficiency and drive down unit costs is to limit product variety and produce a standardized product in large volumes.

Wide Product Variety Makes It Difficult for a Company to Increase