Adopting a uniform menu across all sites provides the McDonald's Corporation __________ by spreading the cost of menu development over a large output.
A) economies of scale
B) diminishing returns
C) constant returns to scale
D) rising marginal product
E) more flexibility

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a company can achieve when it produces on a larger scale. In this case, by adopting a uniform menu across all sites, the cost of menu development is spread over a larger output, resulting in economies of scale for McDonald's Corporation.

Adopting a Uniform Menu Across All Sites Provides the McDonald's