If the demand for flat screen television sets is rising while at the same time the price of a flat screen TV is falling, there is evidence of:
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) diminishing marginal product.

Question

Quizplus · Accepted Answer

Economies of scale occur when increased production leads to lower costs per unit, which can result in lower prices for consumers even as demand rises.

If the Demand for Flat Screen Television Sets Is Rising