
Economies of scale refers to the fact that as the:
A) quantity of product produced in a given time period increases, the cost of manufacturing each unit increases.
B) quantity of product produced in a given time period increases, the cost of manufacturing each unit remains constant.
C) quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.
D) quantity of product produced in a given time period decreases, the cost of manufacturing each unit decreases.
Correct Answer:
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