The benefits of economies of scale and increased competition to an economy include: I. lower unit costs. II. lower consumer prices. III. lower output levels.

Question

Quizplus · Accepted Answer

Economies of scale and increased competition lead to lower unit costs, which in turn lead to lower consumer prices. However, they do not necessarily lead to lower output levels as the production volume may actually increase due to economies of scale.

The Benefits of Economies of Scale and Increased Competition to an Economy