Asked by Juleny Degollado on Jun 03, 2024

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According to the text,________ enable Coca-Cola to spend less advertising dollars per case of soft drinks than Schweppes spends.

A) value chains
B) fixed output costs
C) economies of scale
D) market share strategies

Advertising Dollars

The amount of funding allocated to promotional activities in order to increase product or service visibility.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing as scale is increased.

Value Chains

The full range of activities that businesses go through to bring a product or service from conception to delivery to the end user.

  • Comprehend the principle of economies of scale and its impact on the costs of production.
  • Identify the benefits that market leaders and large corporations gain from economies of scale.
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ZK
Zybrea KnightJun 03, 2024
Final Answer :
C
Explanation :
Economies of scale refer to the cost advantage a company experiences as it increases production. As Coca-Cola is a larger company than Schweppes, it is able to achieve economies of scale, which means it can produce more soft drinks at a lower average cost per unit. Therefore, Coca-Cola is able to spend less advertising dollars per case of soft drinks than Schweppes.