Economies of scale refer to
A) the point at which marginal cost equals average cost.
B) the fact that in the long run, fixed costs remain constant as output increases.
C) the range of output over which the long-run average cost falls as output increases.
D) a feature of short-run production functions but not long-run production functions.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to a lower cost per unit, which is reflected in the long-run average cost curve falling as output increases.

Economies of Scale Refer to