The concept of ________ suggests that as a firm produces more, the average cost of goods produced goes down.
A) natural growth
B) survival of the fittest
C) cost enhancement
D) economies of scale

Question

Quizplus · Accepted Answer

The concept of economies of scale suggests that as a firm produces more, the average cost of goods produced goes down. This is because the fixed costs associated with producing goods, such as rent and machinery, can be spread out over a larger quantity of goods, making each unit less expensive to produce. Additionally, there may be opportunities to purchase materials in bulk at a lower cost, further reducing the cost of goods produced.

The Concept of ________ Suggests That as a Firm Produces