GENERAL KNOWLEDGE

GK

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This economy of scale is where advertising budgets can be spread across multiple products for lower average costs.
A
Managerial
B
Marketing
C
Financial
D
Purchasing
Explanation: 

Detailed explanation-1: -Marketing economies of scale arise from the ability to spread advertising and marketing budgets over an increasing output. That means as production increases, firms can spread fixed costs of marketing over a larger output, which reduces per-unit costs.

Detailed explanation-2: -Economies of scale are cost savings that a company (and, by default, its customers) can reap as a result of efficient production processes. Generally, these cost savings are achieved because the average cost of producing something falls as the volume being produced increases.

Detailed explanation-3: -Technical economies of scale. Technical economies of scale are a type of internal economy of scale. Purchasing economies of scale. Purchasing economies of scale, also called buying economies of scale, are a type of internal economy of scale. Financial economies of scale.

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