By producing its products in larger volume than its competitors, Epli-Mart is able to achieve substantial reductions in unit cost. In other words, Epli-Mart achieves
A) location economies.
B) learning effects.
C) standardization economies.
D) core economies.
E) economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantage that arises with increased output of a product, as the fixed costs are spread over more units, leading to a reduction in the per-unit cost.

By Producing Its Products in Larger Volume Than Its Competitors