What economic concept would be most closely associated with a situation where an aluminum plant uses extensive computerization on the production line to reduce per-unit costs of production?

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm experiences as output increases. The aluminum plant in the given situation is using extensive computerization to reduce per-unit costs, indicating that it is enjoying economies of scale.

What Economic Concept Would Be Most Closely Associated with a Situation