As a result of the system of mass production, the majority of factory owners:

• A. relied less on capital and more on manual labor
• B. were able to increase output and lower per-unit costs
• C. faced higher costs due to inefficient resource allocation
• D. experienced a decrease in overall productivity

Answer: (B)

Verified step by step guidance

1. Understand the concept of mass production: it involves using standardized processes and machinery to produce large quantities of goods efficiently.
2. Recognize that mass production typically leads to economies of scale, meaning that as output increases, the cost per unit of production decreases.
3. Analyze how factory owners benefit from mass production by increasing output due to more efficient use of capital and labor.
4. Note that mass production reduces per-unit costs because fixed costs are spread over a larger number of units and production processes become more streamlined.
5. Conclude that the correct outcome for factory owners under mass production is an increase in output combined with a reduction in per-unit costs.