passwella.
Menu

WAEC Economics 2002 Question 8

Question 8

Theory of Production

One of the advantages of large scale production is that

  1. A.there is a rise in the cost of administration.
  2. B.consumers sacrifice their individual tastes.
  3. C.the firm can use labour-saving machinery.
  4. D.the demand for a firm's products becomes localized.
Show the answer and explanation

Answer: C (the firm can use labour-saving machinery.)

Explanation

A large firm can afford expensive labour-saving machines, which lower cost per unit (technical economies).