The ability of Intel to spread product development costs over a larger number of units of output arises from:

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a firm experiences as it increases its level of output. By producing more units of output, the firm can spread its fixed costs (such as research and development expenses) over a larger number of units, which reduces the average cost per unit. This allows the firm to be more competitive in the marketplace and increase its profitability. Therefore, the ability of Intel to spread product development costs over a larger number of units of output arises from economies of scale.

The Ability of Intel to Spread Product Development Costs Over