A firm reaping economies of scale is typically also achieving:
A) decreasing returns to scale
B) decreasing marginal returns to a fixed factor
C) increasing returns to scale
D) increasing marginal returns to a fixed factor

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm's average costs decrease as it increases production, which is associated with increasing returns to scale.

A Firm Reaping Economies of Scale Is Typically Also Achieving