9
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 9 • GA-Introduction to Business and Technology

Economies of scale give an advantage to what type of company?

Answer
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

Economies of scale occur when a company’s average cost per unit falls as it produces and sells more. A company that makes many sales can spread fixed costs over more units, giving it this advantage. Therefore, the correct choice is a company that makes many sales.

AI-written and checked against the verified answer.

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