Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

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Economies of Scale

Question 33

Multiple Choice

Economies of scale .

A) provide incentives for producers to operate at high volumes to reduce the cost of a product
B) discourage global marketing of successful products
C) provide cheap means of losing weight
D) explain why print media easily travel across national borders
E) only exist in noncapitalist economic systems

Correct Answer: