Economies of scale refer to the range of output over which
A) marginal cost exceeds average cost.
B) the long-run average cost falls as output increases.
C) the marginal product of labor diminishes.
D) the long-run average cost is less than the short-run average total cost.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to a lower cost per unit, meaning the long-run average cost decreases as output increases.

Economies of Scale Refer to the Range of Output Over