Economies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.
A)greater; fall
B)smaller; fall
C)greater; rise
D)smaller; rise
E)equal; fall

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the inputs by a certain percentage results in a greater percentage increase in output, which leads to a decrease in the unit costs of production.

Economies of Scale Are Said to Exist When Inputs Are