If Caltec Corp., a computer manufacturer, increased the number of computers produced to twice the amount it used to, the economies of scale would:

Question

Quizplus · Accepted Answer

Economies of scale are achieved when increasing production leads to lower costs per unit. This can occur through fixed costs being spread over a larger number of units, resulting in a lower fixed cost per unit. Therefore, choice A is the correct answer. The other options are not directly related to economies of scale.