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Hi, may I know what is the answer for this question? I don’t understand what this question is trying to ask.
P/S: I got this question from “Microeconomic and Organizational Context of Business” folder in CIMA Planner.
For example, research and development costs are spread more thinly in global organisations (which might sell millions of units) than in small organisations which might only sell a few thousand units. Think of IT where there are only a few global laptop manufacturers.
Similarly, an organisation might choose to outsource a function to a specialist company that enjoys economies of scale. That cost benefit affects the structure of the organisation.
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