When Fatz confectionery can lower the cost of manufacturing and packaging a pound of candy by doubling the quantity manufactured and packaged each day, it will achieve
A) economies of scope.
B) economies of scale.
C) economies of team production.
D) all of the above

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to lower costs per unit, which is the case when Fatz confectionery doubles its production and reduces costs.

When Fatz Confectionery Can Lower the Cost of Manufacturing and Packaging