Because a toy maker sells a large amount of toys, it is able to acquire plastic products to make the toys at a cheaper price than the competition. The toy maker is taking advantage of:
A) organizational design.
B) economies of scale.
C) economies of scope.
D) organizational culture.

Question

Quizplus · Accepted Answer

The toy maker is able to acquire plastic products at a cheaper price due to the large scale of production. This is referred to as economies of scale, which allows the toy maker to have a cost advantage over its competitors.

Because a Toy Maker Sells a Large Amount of Toys