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The main advantage of large scale production is that

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Economics WAEC 2013

The main advantage of large scale production is that

  • unit cost of production falls checkmark
  • decision -making is quick
  • worker-managemnet relationship is improved
  • the quality of the product increases

The correct answer is: A

Explanation

One of the main advantages of large scale production is economies of scale. That is a proportionate saving in costs gained by an increased level of production.

The large scale production reduces the cost of production to a considerable extent. For instance, assuming a manufacturing company consumes 50 litres of fuel to produce 1000 units of a product. The company would most likely use same 50literes of fuel in the production of 1500 units of output.

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