Supply-side economies of scale arise in situations where a buyer's willingness to pay for a product increases as the number of other buyers for the industry's product increases.

Question

Quizplus · Accepted Answer

Supply-side economies of scale arise when a company's average cost of production decreases as the volume of production increases. The statement in the question describes demand-side economies of scale.

Supply-Side Economies of Scale Arise in Situations Where a Buyer's