Technical economies of scale are closely related to which of the following?
A)The law of diminishing returns.
B)Decreasing returns to scale.
C)Rising short-run average total cost.
D)Falling short-run marginal cost.
E)Increasing returns to scale.

Question

Quizplus · Accepted Answer

Technical economies of scale occur when there is an increase in production that leads to a more efficient use of inputs, resulting in a decrease in average cost per unit. This is associated with increasing returns to scale, where a proportionate increase in all inputs leads to a greater than proportionate increase in output.

Technical Economies of Scale Are Closely Related to Which of the Following