Scenario B.Three students-Bernardo,Astrid,and Rajiv-are discussing how to improve efficiency in a manufacturing context.Bernardo says that the company must work toward achieving lower costs per unit of production.Rajiv believes that the company should use the same resources to make more related products.Astrid holds that avoiding the costs of growing too large and creating waste will improve efficiency.
-In Scenario B,Bernardo,by saying that the company must work toward achieving lower costs per unit of production,is advocating for

Question

Quizplus · Accepted Answer

Bernardo's statement about achieving lower costs per unit of production is advocating for economies of scale, which is the cost advantage that arises with increased output of a product. By producing more units, the company can spread out fixed costs like rent, salaries, and equipment over a larger number of products, resulting in lower costs per unit.