The cost advantage when fixed costs are spread over a large number of units is ________.
A) Long-term effect
B) Economies of scope
C) Economies of synergy
D) Economies of scale

Question

Quizplus · Accepted Answer

The cost advantage when fixed costs are spread over a large number of units is known as economies of scale. This occurs when increasing production leads to lower costs per unit.

The Cost Advantage When Fixed Costs Are Spread Over a Large