The main advantage of large scale production is that
A. unit cost of production falls B. decision -making is quick C. worker-managemnet relationship is improved D. the quality of the product increases
Correct Answer: 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.