A reduction in costs per unit due to increases in efficiency of production as the number of goods being produced increases best defines the term _____.
A)economies of scope
B)economies of finance
C)economies of scale
D)economies of wealth

Question

Quizplus · Accepted Answer

Economies of scale refer to the decrease in costs per unit as production increases, due to increased efficiency in production. This is often achieved through specialisation, division of labour, and the ability to purchase raw materials and supplies at lower costs due to larger order quantities.

A Reduction in Costs Per Unit Due to Increases in Efficiency