Question

economies of scale give an advantage to what type of company? a. a company with a small number of employees b. a company that makes many sales c. a company with many variable costs d. a service - based company

Explanation:

decrease with higher output. A company with many sales operates at a larger scale, allowing it to spread fixed costs over more units, negotiate better supplier terms, and gain efficiency—all of which are the core benefits of economies of scale. The other options do not align: small employee counts, high variable costs, and service-based models do not inherently leverage the volume-driven cost reductions of economies of scale.

Answer:

decrease with higher output. A company with many sales operates at a larger scale, allowing it to spread fixed costs over more units, negotiate better supplier terms, and gain efficiency—all of which are the core benefits of economies of scale. The other options do not align: small employee counts, high variable costs, and service-based models do not inherently leverage the volume-driven cost reductions of economies of scale.