Asked by Wenlu Zhang on May 04, 2024
Verified
The more significant are economies of scale in an industry, the more product variety will be observed.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, leading to a reduction in the per-unit cost of production as the size of the operation grows.
Product Variety
Refers to the assortment of different goods and services that a firm offers to its customers, highlighting the diversity within a product line.
- Understand the importance of pricing frameworks, such as economies of scale, in influencing market results and diversity.
Verified Answer
IÖ
Ilgaz ÖndinMay 10, 2024
Final Answer :
False
Explanation :
Economies of scale typically lead to a reduction in product variety because larger firms focus on producing a limited range of products in high volumes to minimize costs.
Learning Objectives
- Understand the importance of pricing frameworks, such as economies of scale, in influencing market results and diversity.
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