Economies of scale refers to the fact that as the

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Quizplus · Accepted Answer

Economies of scale refers to the reduction in the cost of production per unit as the quantity of output produced in a given time period increases. As the level of production increases, fixed costs (such as rent and machinery) can be spread over a larger quantity of output, resulting in a lower per-unit cost. Additionally, there are often efficiencies gained in the production process itself as workers and machinery become more specialized and adept at producing a particular product. Consequently, as stated in option C, as the quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.

Economies of Scale Refers to the Fact That as the