Economies of scale is an example of:
A) rent seeking.
B) consumer surplus.
C) a government-created barrier.
D) an external market.
E) a natural barrier.

Question

Quizplus · Accepted Answer

Economies of scale result from a larger company being able to produce goods or services at a lower cost per unit due to factors such as improved efficiency, better bargaining power with suppliers, and spreading fixed costs over a larger output. This is a natural barrier, meaning it is not government-created or created through rent seeking, and it is not related to consumer surplus or external markets.

Economies of Scale Is an Example Of