Low-cost strategies normally require large-scale production because producers want the cost savings generated by economies of scale.

Question

Quizplus · Accepted Answer

Low-cost strategies aim to minimize production costs and increase profit margins. Economies of scale refer to the cost advantages that a company achieves when it produces goods or services in larger quantities, which can reduce the per-unit cost of production. Therefore, low-cost strategies typically require large-scale production to achieve economies of scale and lower production costs.

Low-Cost Strategies Normally Require Large-Scale Production Because Producers Want the Cost