Question

London Simpson owns a company that makes smartphone accessories. She is trying to increase her sales, primarily because she knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is ________.

Answer 1

Answer:

economies of scale

Explanation:

Economies of scale -

It is the advantage of the cost , which is produced by the firm or organisation , when the production become very efficient , is known as economies of scale .

The organisation can easily get the economies of scale by reducing the costs and rising the production.

The cost is variable as well as fixed.

Hence, from the scenario given in the question,

The correct term term is economies of scale .