Intel spreads the huge fixed costs of developing new generation chips over the nearly 2 billion chips it sells to computer makers. Intel benefits from
A) comparative advantages.
B) factor endowments.
C) economies of scale.
D) diminishing returns.
E) absolute advantages.

Question

Quizplus · Accepted Answer

Intel benefits from economies of scale, as spreading fixed costs over a large number of units reduces the average cost per unit.

Intel Spreads the Huge Fixed Costs of Developing New Generation