_____________ exist when unit costs decline with increases in production, as fixed costs are spread over a larger volume of output.
A) Economic profit benefits
B) Economies of scale
C) Economies of scope
D) Economies of synergy
E) Strategic business utilities

Question

Quizplus · Accepted Answer

Economies of scale refer to the situation where unit costs decrease as production increases due to spreading fixed costs over a larger volume of output.

_____________ Exist When Unit Costs Decline with Increases in Production