When do economies of scale arise

Question

Quizplus · Accepted Answer

Economies of scale arise when workers specialize in a particular task, leading to greater efficiency and productivity. This results in lower per-unit costs and makes it possible to produce goods and services more efficiently. Therefore, option D is the correct answer. Option A is incorrect because being self-sufficient in production does not directly lead to economies of scale. Option B is incorrect because purchases made due to a current trend do not affect the scale of production. Option C is incorrect because the size of fixed and variable costs does not solely determine the existence of economies of scale.

When Do Economies of Scale Arise