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The company with the highest market share generally has the highest volume of production. This is...

The company with the highest market share generally has the highest volume of production. This is important because a higher volume of production should result in a lower cost per unit due to the:

Low resource utilization

the BCG Matrix

the experience curve

horizontal integration
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Answer #1

It has been stated that the company with highest market share tends to have the highest volume of production.

The higher volume of production results in lower cost per unit due to experience of economies of scale and specialization.

This relationship is indicated by the experience curve which is a downward sloping curve indicating a decrease in per unit cost as cumulative production increases.

Thus,

A higher volume of production should result in a lower cost per unit due to the Experience curve.

Hence, the correct answer is the option (c).

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