________ are(is) generated when increasing production lowers the average cost of each unit produced.
A) Business scalability
B) Economies of scale
C) Reaching for scale
D) Market leadership
E) Economies of scope

Question

Quizplus · Accepted Answer

Economies of scale are generated when increasing production lowers the average cost of each unit produced. This is due to the fact that as production increases, fixed costs such as rent, machines, and equipment are spread over more units, reducing the average cost per unit.

________ Are(is) Generated When Increasing Production Lowers the Average Cost