Sources of External Economies of Scale Include

question 18

Multiple Choice

Sources of external economies of scale include

• A) larger plant size that allows the plant to take advantage of technology.
• B) larger firm size that results in volume discounts.
• C) larger industry size results in lower production costs.
• D) All of the above are correct.

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Definitions:

Scanlon Plan

A gainsharing program wherein employees receive bonuses for cost-saving measures or productivity improvements.

Improved Profits

An increase in the amount of money that a business earns after all its costs are paid, indicating better financial performance.

Productivity

Productivity refers to the effectiveness and efficiency with which an individual or organization produces output, typically measured in terms of the amount of output per unit of input.

Sales Compensation Plan

A system designed to reward sales employees with commissions, bonuses, or other incentives based on their performance or sales achievements.