The ability to lower the average costs of production for one product is possible with
A)Economies of scale
B)Economies of Scope
C)Diseconomies of Scale
D)Diseconomies of Scope

Question

Quizplus · Accepted Answer

Economies of scale refers to the cost advantage that arises with the increase in scale of production. As the scale of production increases, the average cost of production decreases due to factors such as specialization, efficient use of resources, and better bargaining power with suppliers. Therefore, the ability to lower the average costs of production for one product is possible with economies of scale.

The Ability to Lower the Average Costs of Production for One