Dfi to achieve economies of scale bear co. and viking, inc., are automobile manufacturers that desire to benefit from economies of scale. bear co. has decided to establish distributorship subsidiaries in various countries, while viking, inc., has decided to establish manufacturing subsidiaries in various countries. which firm is more likely to benefit from economies of scale?

Question

Deacon Fowler

Business

15 October, 10:36

Dfi to achieve economies of scale bear co. and viking, inc., are automobile manufacturers that desire to benefit from economies of scale. bear co. has decided to establish distributorship subsidiaries in various countries, while viking, inc., has decided to establish manufacturing subsidiaries in various countries. which firm is more likely to benefit from economies of scale?

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Jaidyn · Answer 1

Bear Company is probably going to profit since it is keeping up the greater part of its assembling in one zone. In the case of Viking Inc. spreads its creation offices, it will bring about higher settled expenses of apparatus.

The Bear Company profits by the cost advantage that emerges with expanded yield of an item. Economies of scale emerge due to the converse connection between the amount delivered and per-unit settled expenses.