The concept of _______ means that as the measure of output goes up, average costs of production decline-at least up to a point.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantage experienced by firms when they increase their level of output. The concept implies that as production scales up, the cost per unit of output decreases due to spreading fixed costs over more units, improving efficiency, and negotiating better terms with suppliers.

The Concept of _______ Means That as the Measure of Output