Asked by Hannah Williams on Jul 24, 2024
Verified
Economies of scale often arise because higher production levels allow specialization among workers.
Economies Of Scale
The economical benefits that businesses gain from their operation size, typically resulting in lower costs per unit of output as the scale expands.
Specialization
The process of focusing efforts and resources on a limited number of activities to increase efficiency and productivity.
- Understand the impact of economies of scale and efficient scale on cost reduction and production optimization.
- Understand the impact of worker specialization on production levels and costs.
Verified Answer
NN
natthaphong noraratchatasakulJul 26, 2024
Final Answer :
True
Explanation :
Economies of scale occur when increasing production allows for greater efficiency, including through worker specialization, which reduces the cost per unit of production.
Learning Objectives
- Understand the impact of economies of scale and efficient scale on cost reduction and production optimization.
- Understand the impact of worker specialization on production levels and costs.
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