A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:
A)economies of scale.
B)diseconomies of scale.
C)increasing opportunity costs.
D)scale reduction.

Question

Quizplus · Accepted Answer

The situation described indicates that the university is experiencing economies of scale, as it is able to reduce its costs per student by increasing the scale of its operations.

A University That Benefits from Lower Costs Per Enrolled Student