Asked by Megan McDermott on Apr 25, 2024
Verified
Achieving economies of scale is most important to a firm with ________.
A) high research and development costs
B) complicated organizational structures
C) numerous international market segments
D) multiple business-to-business customers
Research and Development Costs
Expenses associated with the research and development activities of a company, aiming at new product development and improvement of existing products.
Economies of Scale
Cost advantages that a business can achieve due to an increase in the scale of production, leading to lower per-unit costs.
- Acquire knowledge about the economies of scale and their effect on reducing production costs.
- Outline methods companies can utilize to attain economies of scale.
Verified Answer
AB
Abdulwahab Boodai7 days ago
Final Answer :
A
Explanation :
Achieving economies of scale can help a firm with high research and development costs by allowing the cost of each unit to decrease as production increases. This can make it more cost-effective to develop new products or improve existing ones. Complicated organizational structures, numerous international market segments, and multiple business-to-business customers may also benefit from economies of scale, but they are not as directly linked as high research and development costs.
Learning Objectives
- Acquire knowledge about the economies of scale and their effect on reducing production costs.
- Outline methods companies can utilize to attain economies of scale.
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