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As business expands, it experiences economies of scale such as division of labour and specialization. What are the benefits of the economy of scale mentioned?

      

Explain the benefits of the economy of scale.

  

Answers


Maurice
(i) High quality goods and services are produced.

(ii) Less mental and physical effort is required.

(iii) Encourages invention and innovation.

(iv) Output per worker is greatly measured.

(v) A worker engages in the activity he/ she is best talented or suited.

(vi) Production is faster and efficient due to use of machines.

(vii) It saves time as workers concentrate on one activity.
maurice.mutuku answered the question on July 8, 2017 at 08:42


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