According to the concept of economies of scale, as plant output expands, _____.

Name: According to the concept of economies of scale, as plant output expands, _____.
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Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm can achieve by increasing production. As plant output expands, the fixed costs of production are spread over a larger number of units, resulting in a decrease in average total cost or unit cost. Therefore, the correct option is C, unit costs decrease.

According to the Concept of Economies of Scale, as Plant