Economies of scale can be defined as:
A)Manufacturing progress in technology design and process design
B)A decrease in unit cost of output due to a larger volume
C)A proportionate increase in the amount of inputs employed in a product process that results in a lower unit cost
D)An increase in fixed costs relative to variable costs with a high volume of production

Question

Quizplus · Accepted Answer

Economies of scale refer to the decrease in the unit cost of output as the volume of production increases. This is due to spreading fixed costs over a larger output and taking advantage of more efficient production processes. Choices A, C, and D do not accurately define economies of scale.

Economies of Scale Can Be Defined As