Eddie,the owner of a fast-food joint,finds that he spends far lesser when he bakes breads in dozens than when he bakes two or three loafs at a time.This idea of Eddie's is similar to the concept of:
A) break-even point.
B) economy of scale.
C) economy of scope.
D) monopoly.

Question

Quizplus · Accepted Answer

Eddie is realizing the advantages of producing in larger quantities, which leads to lower costs per unit. This is known as the economy of scale.

Eddie,the Owner of a Fast-Food Joint,finds That He Spends Far