Economies of scale are cost advantages that accrue for firms with
A) high fixed costs.
B) low employee turnover.
C) larger output.
D) high capital risks.

Question

Quizplus · Accepted Answer

Economies of scale are cost advantages that accrue for firms with larger output because they can spread fixed costs over more units, can employ technology more efficiently, can benefit from a more specialized division of labor, and can demand better terms from their suppliers.

Economies of Scale Are Cost Advantages That Accrue for Firms