Economies of scale are reductions in average

Name: Economies of scale are reductions in average
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Quizplus · Accepted Answer

Economies of scale are reductions in average total cost that result from using operations of larger size. As the scale of production increases, the fixed costs are spread over a larger number of units, resulting in a lower average total cost. This means that a firm can produce goods and services at a lower cost per unit when it operates on a larger scale.

Economies of Scale Are Reductions in Average