By fully utilizing its employees' skills and knowledge, Pelican Gadgets is making more effective use of organizational resources than do its competitors. It is thus increasing ________.
A) economies of scale
B) brand loyalty
C) compliance with regulations
D) barriers to exit

Question

Quizplus · Accepted Answer

Economies of scale are the cost advantages associated with large operations. Economies of scale 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.

By Fully Utilizing Its Employees' Skills and Knowledge, Pelican Gadgets