Economies of scale are said to exist when
A)inputs are increased by some percentage and output increases by the same percentage.
B)inputs are increased by some percentage and output increases by a lesser percentage.
C)inputs are increased by some percentage and output increases by a greater percentage.
D)the LRATC curve slopes upward.
E)none of the above

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the inputs by a certain percentage results in a greater percentage increase in output, indicating more efficient production as scale increases.

Economies of Scale Are Said to Exist When