_____ exist when the average unit costs of a good or service decline as the quantity produced increases.
A) Economics of agglomeration
B) Economies of scope
C) Economies of scale
D) Returns to scale

Question

Quizplus · Accepted Answer

Economies of scale exist when the average unit costs of a good or service decline as the quantity produced increases. This happens because fixed costs (such as capital equipment or advertising) can be spread over a larger output, reducing the average cost per unit.

_____ Exist When the Average Unit Costs of a Good