Economies of scale are achieved when a company reduces unit costs by
A) manufacturing products based on factor endowments.
B) producing a larger volume of product.
C) reducing staff.
D) eliminating competitor value.
E) acquiring a new supplier.

Question

Quizplus · Accepted Answer

Economies of scale occur when a company increases production and lowers costs, as fixed costs are spread over a larger number of goods.

Economies of Scale Are Achieved When a Company Reduces Unit