How Does Economy of Scale Result in an Increase in Effective

question 47

Multiple Choice

How does economy of scale result in an increase in effective capacity?

• A)Because more time will be spent processing instead of setting up
• B)Because setup time will be increased
• C)Because quantity discounts will be less
• D)Because average inventory levels are decreased
• E)Because fewer managers are needed

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Definitions:

Advantages and Disadvantages

The positive and negative aspects associated with a particular choice, decision, or course of action.

Direct Inspire

The act of motivating or influencing someone directly through action or words to achieve something.

Certain Goals

Specific, well-defined targets or objectives that individuals or organizations aim to achieve within a certain timeframe.

Leadership

Ability to direct or inspire people to attain certain goals.