Economies of scale may arise from
A)cost reductions gained through mass production.
B)discounts on bulk purchases of raw material inputs and component parts.
C)advantages gained by spreading production costs over a large production volume.
D)cost savings associated with spreading marketing and advertising costs over a large volume of output.
E)all of these choices

Question

Quizplus · Accepted Answer

Economies of scale can arise from a combination of cost reductions gained through mass production, discounts on bulk purchases of raw materials and component parts, advantages gained by spreading production costs over a large production volume, and cost savings associated with spreading marketing and advertising costs over a large volume of output. Therefore, all of these choices are possible sources of economies of scale.

Economies of Scale May Arise from