When economists talk of spreading overheads they mean:
A) increasing output to reduce average fixed costs
B) having factories in different countries
C) having several sources for each input
D) increasing output to reduce average variable costs

Question

Quizplus · Accepted Answer

Spreading overheads refers to increasing output to reduce average fixed costs, as fixed costs are spread over a larger number of units.

When Economists Talk of Spreading Overheads They Mean