Taylor Helmets has been able to lower the average cost of producing a bicycle helmet as it increases the number of helmets it manufactures each day. Taylor Helmets is most likely benefiting from ________.

Question

Quizplus · Accepted Answer

Economies of scale occur when a company reduces its production costs as it increases the quantity of output. Taylor Helmets lowering the average cost of producing more helmets is a classic example of economies of scale.

Taylor Helmets Has Been Able to Lower the Average Cost