The concept of economies of scale suggests that the average cost of goods decreases as the production level increases.

Question

Quizplus · Accepted Answer

This is the basic definition of economies of scale, which is a key principle in production and business management. As production increases, fixed costs are spread over a larger output, leading to a lower per-unit cost. This allows firms to produce goods more efficiently and potentially increase profits or offer lower prices to consumers.

The Concept of Economies of Scale Suggests That the Average