Asked by Megan McDermott on Apr 25, 2024

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.