Economies of scale
A) require a change in the size of operations and therefore is a long-run consideration
B) require a more intensive use of existing plant and therefore is a short-run consideration
C) means that a doubling of plant size will double output
D) require a change in the size of plant and therefore is a short-run consideration
E) require a more intensive use of existing plant and therefore is a long-run consideration

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. This typically involves changes in the size of the plant or operations, which are decisions made in the long run, as they cannot be easily or quickly adjusted.

Economies of Scale