Question

In order to take advantage of economies of scale, large businesses usually ______.

a. devote resources to produce selected quantities of products
b. devote resources to produce large quantities of products
c. devote resources that are committed for only short time periods
d. devote resources that are able to quickly respond to a changing market

Answer 1

Large businesses usually devote resources to produce large quantities of products in order to take advantage of economies of scale. Correct option is b)

Step-by-step explanation:

Large businesses usually devote resources to produce large quantities of products in order to take advantage of economies of scale. Economies of scale refer to the situation where, as the quantity of output goes up, the cost per unit goes down. By producing in large quantities, businesses can reduce their average production costs, leading to increased profitability.