Question

A company has a process that has been designed to process 50

customers per hour. The actual output during an hour is 55
customers. Which of the following is true?
Seleccione una:
AThe capacity utilization rate is lower than 1.
B.The best operation level is 55 customers per hour.
C.There is economy of scale in this process.
D.There might be diseconomy of scales in this process.
E.None of the above.

Answer 1

There is an economy of scale in this process.

Step-by-step explanation:

Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. In this case, the company is able to process more customers (55) than the designed capacity (50), indicating a higher output. Therefore, we can conclude that there is an economy of scale in this process.