Economies of scale arise from which of the following sources?
A) increasing fixed costs by limiting them to small volumes
B) serving domestic and international markets from the same production facilities
C) serving only domestic markets
D) bargaining with distributors to drive up the product costs

Question

Quizplus · Accepted Answer

Economies of scale refer to the reductions in unit cost achieved by producing a large volume of a product. Attaining economies of scale lowers a firm's unit costs and increases its profitability.

Economies of Scale Arise from Which of the Following Sources