As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________.
A) increase in the diseconomies of scale
B) accumulated production experience
C) decrease in the economies of scale
D) increase in derived demand
E) increase in primary demand

Question

Quizplus · Accepted Answer

As production workers become better organized and more familiar with equipment, they are able to work more efficiently and effectively, leading to accumulated production experience. This results in a decrease in the average cost per unit, known as economies of scale. This is the opposite of choice A, which refers to diseconomies of scale that occur when a company becomes too large and inefficient. Choices D and E refer to demand, which is not relevant to the question.

As Production Workers Become Better Organized and More Familiar with Equipment