When the number of mega-producers of hobs that operated at a lower average cost than smaller producers rose, the number of hogs slaughtered rose to record levels. What economic concept does this describe?
A) Economies of scope
B) Economies of scale
C) Indivisible setup costs
D) Minimum efficient production

Question

Quizplus · Accepted Answer

This describes economies of scale, where larger producers can operate at a lower average cost due to increased production levels, leading to higher output, such as more hogs being slaughtered.

When the Number of Mega-Producers of Hobs That Operated at a Lower