A firm that is able to use its inputs more efficiently as it increases production in the long run BEST demonstrates:
A)economies of scale.
B)diseconomies of scale.
C)labor-intensive production.
D)capital-intensive production.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm can achieve by increasing its production. In this case, the firm is able to use its inputs more efficiently as it increases production, which suggests that it is benefitting from economies of scale.

A Firm That Is Able to Use Its Inputs More