By producing its products in larger volume than its competitors,Omega is able to achieve substantial reductions in unit cost.Which of the following refers to Omega's advantage?
A)location economies
B)learning effects
C)standardization economies
D)core economies
E)economies of scale

Question

Quizplus · Accepted Answer

Omega's advantage is due to economies of scale, which means that as the volume of production increases, the average cost of each unit produced decreases. This is because fixed costs are spread across a larger number of units, making each unit cheaper to produce.

By Producing Its Products in Larger Volume Than Its Competitors,Omega