Economies of scale are

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a business can achieve by increasing the scale of production or service delivery. As the size of the business increases, certain fixed costs can be spread over a larger volume of output, leading to lower average costs. This can include savings from streamlined management and reduced duplication of effort. Option A is incorrect as scaling down a business would not lead to economies of scale. Option C may be a benefit of vertical integration but does not directly relate to economies of scale. Option D is incorrect as one of the options is correct.

Economies of Scale Are