As a firm gets larger and larger,it finds that it is able to charge a lower price and yet continue to make profit.This firm most likely has exploited
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) labour by making them work with fewer machines.
E) the consumers by simply increasing its advertising budget to increase sales.

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm increases its scale of production, leading to a reduction in the cost per unit of output. This allows the firm to charge a lower price while still maintaining profitability.

As a Firm Gets Larger and Larger,it Finds That It