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valina [46]
3 years ago
7

When car makers began to cut the costs of producing cars by designing the chassis, engine, and transmissions so that different m

odels could be produced on the same assembly line, production costs fell $240 per car. Based on this information, this scenario could potentially illustrate
Business
1 answer:
ruslelena [56]3 years ago
4 0

Options:

A.economies of scale.

B. diseconomies of scale.

C. constant returns to scale.

D. diminishing marginal product

Answer:A. Economies of scale.

Explanation: Economies of scale is a term used in Economics to describe the as the costs benefits and advantages that a business firm enjoys through efficient utilisation of its processes and resources.

Economies of scale is also a major advantage of large scale business organisations as it ensures that the size of manufacturing enhances their capacity to compete favourably with reduced cost due to their size and multiple stream of investments.

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B) valid as a quality control mechanism for protection of goodwill.

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Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.

One of the main advantages of a franchise is that, franchisers such as Salads 'R' Us do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee.

The purchasing requirement in this scenario is valid as a quality control mechanism for protection of goodwill because it facilitates and promotes uniformity and quality in all Salads 'R' Us franchise outlets by ensuring that they will use napkins and dressings purchased from them (franchisor).

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Challenges of self-employment.Explain in paragraph.
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