Answer :
To manufacture athletic footwear in all geographic regions then it should achieve all available production-related economies of scale for earn a production cost advantage over rivals in all production facilities. Option D is correct.
What is Economies of scale?
When the scale or magnitude of the production produced by a firm increases while simultaneously the average cost per unit of output decreases this common phenomena is refers to a stage of economies of scale.
Three types of scale:
- scale economies in technology.
- scale economies in purchasing also known as buying economies of scale.
- financial scale economies.
Thus for a different geographic manufacturing facilities of a athletic footwear entity shall have all the economies of scale to earn a cost advantage.
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