ATM's located at banks, service stations, and stores are a good example of
A) economies of scale
B) constant returns to scale
C) increasing marginal returns
D) fixed inputs

Question

Quizplus · Accepted Answer

ATMs located at various locations are a good example of economies of scale because as banks deploy more ATMs, the average cost of transactions per ATM decreases due to the spread of fixed costs over a larger number of transactions.

ATM's Located at Banks, Service Stations, and Stores Are a Good