Question

Which of the following is an advantage of flexible manufacturing technologies? They have reduced the importance of technological innovation in industries. They have made shorter production runs economical. They have increased the importance of production economies of scale. They eliminate the need for differentiation from competitors.

Answer 1

Answer:

They have increased the importance of production economies of scale.

Explanation:

Flexible production allows the manufacture of different types of products in the same industrial production line. This makes companies lower costs by avoiding tool change, time savings, and industry structure.

This type of economy fits into the description of economies of scale. Economies of scale are those where the increase in production results in a decrease in the average cost of the product. Increasing production - by including more products on the production line - without a proportional increase in the factory's installed capacity leads to a reduction in the average cost of production, ie it is an economy of scale.