Question

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

Answer 1

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

• the bigger the plant, the more efficient production became.

What is Economies of Scale?

This refers to the cost advantage which a particular company makes as they produce more goods using fewer input costs as a result of the size of the market.

With this in mind, with the evolution of businesses and the production of larger amounts of product, then it can be said that their use of mass production methods shows that if the production plant is bigger, then the production is more efficient.

Read more about economies of scale here:

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