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WAEC Economics 2013 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Economics 2013 Objective paper, with the correct answer and a full explanation.

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The main advantage of large scale production is that

  • A. unit cost of production fallsCorrect
  • B. decision making is quick
  • C. worker-management relationship is improved
  • D. the quality of the product increase

Explanation

In large scale production, unit (average) cost falls as output increases — this is known as economies of scale.

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