Which of the following refers to the cost savings achieved when the volume of a product produced by a firm enables it to reduce per unit cost?
A) Economies of scale
B) Return on equity
C) Demand-side benefits scale
D) Tangible resources

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost savings achieved by a firm when the volume of product produced increases, allowing for a reduction in per unit cost. This occurs due to factors such as increased specialization, better utilization of equipment and machinery, and lower overhead costs.

Which of the Following Refers to the Cost Savings Achieved