Economies of scale exist when the
A) total cost of production falls as the output increases.
B) cost of producing a unit of a good falls as its output decreases.
C) cost of producing a unit of a good falls as its output increases.
D) firm uses specialized resources to produce a range of goods and services.

Question

Quizplus · Accepted Answer

Economies of scale occur when the average cost per unit of production decreases as the scale of production increases, which is described in option C.

Economies of Scale Exist When the