Question

If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV sets each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per TV will be lower. What is this an example of?

Name: if a factory produces 100 tv sets per year each tv will be quite expensive to make however if a factory produces 20000 tv sets each year then it can set up an assembly line with huge machine 59392
Uploaded: 2023-12-21T01:53:25-08:00
Duration: 2 min 48 s
Channel: Lucas Finney
Description: if a factory produces 100 tv sets per year each tv will be quite expensive to make however if a factory produces 20000 tv sets each year then it can set up an assembly line with huge machine 59392

          If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV sets each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per TV will be lower. What is this an example of?

Added by Purificaci-N M.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Lucas Finney

12/21/2023

Step 1

Step 1: This is an example of economies of scale, which refers to the cost advantages that a business can achieve by increasing its scale of production. Show more…

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If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV sets each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per TV will be lower. What is this an example of?