Question

When the business enjoys economies of scale in various functional areas, the effect can be seen
a) In reduced industrial action by the trade unions
b) In reduced average cost of production and sale
c) In reduced output and reduced productivity
d) None of the options given here are correct

Answer 1

Explanation:

When more units of a good or service can be produced on a larger scale, yet with (on average) fewer input costs, economies of scale are said to be achieved. Alternatively, this means that as a company grows and production units increase, a company will have a better chance to decrease its costs

Answer 2

Answer:

please refer to the given attachment