Economies of scale
A) lead to rising long-run average costs as output increases.
B) occur if output more than doubles when all inputs are doubled.
C) occur if output less than doubles when all inputs are doubled.
D) occur when management complexity brings rising average cost.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the scale of production leads to a lower cost per unit. This happens when output more than doubles as all inputs are doubled, indicating increasing returns to scale.

Economies of Scale