__________ refers to lower production costs resulting from greater production for an enlarged market.
A)Production creation
B)Trade diversion
C)Internal economies of scale
D)External economies of scale
E)Factor mobility

Question

Quizplus · Accepted Answer

Internal economies of scale refer to the cost advantages that a firm experiences when it increases its output. This can be achieved through specialization, increased efficiency, and better resource utilization. As the firm produces more, it benefits from lower average costs and can pass these savings on to the customers. This allows the firm to expand its market share and increase its profitability.

__________ Refers to Lower Production Costs Resulting from Greater Production