You read a story in the newspaper about the "economies of mass production." This means that
A) total cost is less at larger levels of production.
B) long-run average cost is less at larger levels of production.
C) marginal cost is less at larger levels of production.
D) fixed cost is less at larger levels of production.

Question

Quizplus · Accepted Answer

The economies of mass production refer to the fact that as the level of production increases, the long-run average cost per unit decreases. This is due to factors such as spreading fixed costs over a larger output and taking advantage of specialization and efficiencies in production processes.

You Read a Story in the Newspaper About the "Economies