Which of the following refers to a reduction in the cost per unit as the total volume of a product increases?

Question

Quizplus · Accepted Answer

Economies of scale refer to the reduction in cost per unit as the total volume of a product increases. This is because fixed costs can be spread across more units, reducing the cost per unit. Economies of scope refer to the cost savings from producing multiple products together, and are not related to volume. Economies of production, manufacture, and assembly are all related to specific stages of the production process and do not necessarily reflect changes in volume.

Which of the Following Refers to a Reduction in the Cost