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

Question

Quizplus · Accepted Answer

Economies of scale refer to the reduction in transaction costs per dollar of investment as the size of transactions increases. This can occur due to a variety of factors, such as spreading fixed costs over a larger transaction size or negotiating better terms with suppliers or counterparties.

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