Economies of Scale Exist When

question 46

Multiple Choice

Economies of scale exist when:

• A) increasing the scale of production leads to a lower cost per unit output
• B) doubling the amount of capital more than doubles total output
• C) doubling the amount of labour more than doubles the amount of output
• D) any of the conditions under A, B, or C occurs

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Definitions:

Manufacturing Approach

A method focusing on the efficient production of goods, optimizing operations, and minimizing waste to enhance profitability and competitiveness.

Productivity

The measure of efficiency in which goods and services are produced, often evaluated by the output per unit of input.

Process Re-engineering

Process re-engineering involves analyzing and redesigning workflow and processes within and between organizations to optimize performance and reduce costs.

Work Processes

The series of tasks, activities, or operations involved in the completion of a job or the production of goods and services within a workplace.