Question 9
Theory of ProductionOne of the advantages of large-scale production is that
- A.there is a rise in the cost of administration
- B.consumers sacrifice their individual tastes
- C.the firm can use labour-saving machinery
- D.the demand for a firm's products becomes localized
- E.decision making takes a long time because different levels of management are involved.
Show the answer and explanation
Answer: C (the firm can use labour-saving machinery)
Explanation
A large firm can afford expensive labour-saving machines, lowering its unit costs; the other options are disadvantages.