The fact that a large company can enjoy savings from producing goods in high volume that are not available to a small company is called
A)economies of scope.
B)economies of scale.
C)vertical integration.
D)horizontal integration.

Question

Quizplus · Accepted Answer

Economies of scale are cost advantages that a company can achieve when it produces goods or services in high volume. This can result in lower production costs per unit and other savings, such as bulk purchasing discounts. Small companies may not be able to achieve these savings due to their smaller production volume.

The Fact That a Large Company Can Enjoy Savings from Producing