The phenomenon where producing more such that the average cost of production for the item decreases is known as
A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)efficiency.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantage experienced by firms when production becomes efficient, leading to a decrease in the average cost of production as the scale of production is increased.

The Phenomenon Where Producing More Such That the Average Cost