If the car manufacturer enjoys economies of scale,then an increase in the number of cars manufactured will lead to a(n):

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages a company experiences when it produces goods on a larger scale. This means that as the car manufacturer increases the production of cars, the average cost of producing each car will decrease due to economies of scale. Therefore, an increase in the number of cars manufactured will lead to a decrease in average cost.

If the Car Manufacturer Enjoys Economies of Scale,then an Increase