Which one of the following statements explaining some aspect of economies of scale is best?
A) A larger facility usually has a smaller total fixed cost.
B) With higher volumes, the process shifts toward flexible flows, with resources dedicated to individual products.
C) A 100- bed hospital costs more to build than twice the cost of a 50- bed hospital.
D) Dedicating resources to individual products reduces changeovers and setups.

Question

Quizplus · Accepted Answer

Dedicating resources to individual products reduces changeovers and setups, which is an aspect of economies of scale as it can lower costs and increase efficiency.

Which One of the Following Statements Explaining Some Aspect of Economies