A German business that makes millions of vehicle parts annually was able to lower its cost per unit as it boosted production. This serves as an example of the idea of economies of scale.
Cost advantages that businesses enjoy when production becomes efficient are known as economies of scale. By increasing production and reducing expenses, businesses can attain economies of scale. Costs are divided among more products, which causes this. Costs come in fixed and variable forms.
When it comes to economies of scale, the size of the business typically matters. Cost savings increase with business size. Both internal business and external economies of scale are possible. While external economies of scale are influenced by outside causes, internal ones are based on management choices.
Economies of scale result in cheaper per-unit costs for a variety of reasons. Production volumes are first increased through worker specialization and better technological integration. Additionally, decreased per-unit prices may result from larger advertising purchases, bulk orders from suppliers, or lower startup costs. Third, cost reduction is aided by dividing internal function costs among a greater number of manufactured and sold units.
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Answer:
Social responsibility
Explanation:
Social responsibility is an obligation of a business firm to act in ways that are good to the society. A business firm must act in a way that will benefit the society.
It suggest that a business firm must be concerned about the welfare of the people in the community.
It is ethical of a business to consider the welfare of the people before taking any action in the society. This implies that, a business firm shouldn't only consider making profit or expanding their business but should take into consideration the wellbeing of the people around them.
Social responsibility is not only performed by a business firm but also the duty of every individual that is capable of impacting the environment.
Every individual and business firm should impact the environment in a positive way and Improve on the wellbeing of people dwelling in the environment.
Answer: Ownership,economies. <em>This statement is true.</em>
Explanation:
A monopoly is referred to as or known as the circumstance under which an organization and the commodity it is offering tends to dominate the sector or the market or the industry. Monopolies are usually considered to be an extreme outcome of the capitalism in free-market in the absence of any restraints or restriction.
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D) Salaries
Revenue is the income for your business so you make a profit from fund raisers, donations and fees charged per child. You are losing revenue when you have to pay your workers salaries
