The term economy of scale refers to which of the following?
A) Increasing costs through the production of larger quantities.
B) Decreasing costs through the production of larger quantities.
C) Decreasing costs through the production of smaller quantities.
D) Increasing costs through the production of smaller quantities.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

The Term Economy of Scale Refers to Which of the Following