What kind of economies come from reductions in average costs due to increases in capacity utilization?
A)Short-run economies of scale
B)Short-run economies of scope
C)Long-run economies of scale
D)Long-run economies of scope
E)Fully automated economies

Question

Quizplus · Accepted Answer

Short-run economies of scale occur when average costs decrease as a firm increases production by utilizing existing capacity more efficiently.

What Kind of Economies Come from Reductions in Average Costs