The main advantage of large scale production is that
ECONOMICS
WAEC 2013
The main advantage of large scale production is that
- A. unit cost of production falls
- B. decision -making is quick
- C. worker-managemnet relationship is improved
- D. the quality of the product increases
Correct Answer: A. unit cost of production falls
Explanation
One of the main advantages of large scale production is economies of scale. That is a proportionate saving in costs gained by an increased level of production.
The large scale production reduces the cost of production to a considerable extent. For instance, assuming a manufacturing company consumes 50 litres of fuel to produce 1000 units of a product. The company would most likely use same 50literes of fuel in the production of 1500 units of output.
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