Taurus Inc.usually produces 5,000 handcrafted products in a day.Recently, the demand for handcrafted products drastically increased as one of its products became a popular item for home décor.Due to this increase, the company had to up its production level to 10,000 products per day.This, however, decreased the price of individual products.This scenario best illustrates _____.
A)economies of wealth
B)economies of finance
C)economies of scope
D)economies of scale

Question

Quizplus · Accepted Answer

The scenario illustrates economies of scale, as the company had to increase production to meet the increased demand, resulting in a decrease in the price of individual products.