Economies of scale are illustrated byA) a company declaring that they will not have sales,but will maintain very low prices all the time.B) the price of a taxi ride service increasing after 2 a.m.C) a supplier using a third party logistics firm.D) a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.

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Miranda Jennifer · Accepted Answer

Final Answer : D, Explanation :  The supplier waiting until enough demand has built up to send a full truckload shipment to their customer is an example of economies of scale. By waiting to send a full truckload, the supplier can spread the fixed costs of shipping over a greater number of units, reducing the average cost per unit of transportation. This is a form of economies of scale. The other options do not represent economies of scale.

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