An important benefit of big business was ______.

• A. higher prices for consumers
• B. a reduction in market competition
• C. the ability to achieve economies of scale
• D. less specialization in production

Answer: (C)

Verified step by step guidance

1. Understand the concept of economies of scale: This refers to the cost advantages that a business obtains due to expansion, which typically leads to a lower cost per unit of output as the scale of production increases.
2. Recognize that big businesses can spread fixed costs over a larger quantity of output, reducing average costs and increasing efficiency.
3. Identify that higher prices for consumers and a reduction in market competition are generally disadvantages or potential negative effects, not benefits.
4. Note that less specialization in production is usually not a benefit of big business; in fact, big businesses often increase specialization to improve productivity.
5. Conclude that the key benefit of big business is the ability to achieve economies of scale, which can lead to lower costs and potentially lower prices for consumers.