The reduction in transactions costs per dollar of investment as the size of transactions increases is
A)discounting.
B)economies of scale.
C)economies of trade.
D)diversification.

Question

Quizplus · Accepted Answer

Economies of scale refer to the reduction in average costs per unit as the size of transactions increases. This may apply to various costs, including transaction costs. As the amount of investment increases, the fixed costs associated with conducting the transaction can be spread over a larger investment amount, leading to a lower cost per dollar invested.

The Reduction in Transactions Costs Per Dollar of Investment as the Size