Related to the Economics in Practice on page 198. The process of producing solar panels is subject to economies of scale, which means that as the use of solar panels ________, the long-run cost to produce them will likely ________.
A) increases; rise
B) increases; fall
C) decreases; fall
D) decreases; stay the same

Question

Quizplus · Accepted Answer

Economies of scale imply that as production increases, the average cost per unit decreases, so as the use of solar panels increases, the long-run cost to produce them will likely fall.

Related to the Economics in Practice on Page 198