Three Students-Bernardo, Astrid, and Rajiv-Are Discussing How to Improve Efficiency

Multiple Choice

Three students-Bernardo, Astrid, and Rajiv-are discussing how to improve efficiency in a manufacturing context. Bernardo says that the company must work toward achieving lower costs per unit of production. Rajiv believes that the company should use the same resources to make more related products. Astrid holds that avoiding the costs of growing too large and creating waste will improve efficiency. According to Astrid, avoiding the costs of growing too large and creating waste will improve efficiency. She is referring to

A) diseconomies of scale.
B) diseconomies of scope.
C) economies of scale.
D) economies of scope.
E) economies of size.