Economies of scale exist when:
A) increasing the scale of production leads to a lower cost per unit output
B) doubling the amount of capital more than doubles total output
C) doubling the amount of labour more than doubles the amount of output
D) any of the conditions under A, B, or C occurs

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the scale of production results in a lower cost per unit of output, which is described in option A.

Economies of Scale Exist When