Paper 1 · Stock Control
A benefit to a poultry producer of operating on a large scale is
Alower total fixed costs than a small producer
Blower unit costs through economies of scale
Cfaster decision-making than a small producer
Dless exposure to disease across the flock
Explanation: Bulk purchasing, specialised staff and equipment, and fixed costs spread over far more birds all reduce the cost of producing each one. Total fixed costs are higher for a large operation, not lower; it is the cost per unit that falls, and decisions usually take longer, not less time.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q10