Which one of the following statements explaining some aspect of economies of scale is best?
A) A larger facility usually has a smaller total fixed cost.
B) A 100-bed hospital costs more to build than twice the cost of a 50-bed hospital.
C) With higher volumes, the process shifts toward flexible flows, with resources dedicated to individual products.
D) Dedicating resources to individual products reduces changeovers and setups.

Question

Quizplus · Accepted Answer

Dedicating resources to individual products reduces changeovers and setups, which is a key aspect of economies of scale as it allows for more efficient production and cost savings.

Which One of the Following Statements Explaining Some Aspect of Economies