The main advantage of large scale production is that
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Correct Answer: Option 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.
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.