Which of the following are created when the costs of offering goods and services decreases as a firm is able to sell more items?
A) Economies of cost
B) Economies of demand
C) Economies of distribution
D) Economies of scale
E) Economies of supply

Question

Quizplus · Accepted Answer

Economies of scale occur when the cost per unit of production decreases as the volume of production increases, allowing firms to spread fixed costs over more units.

Which of the Following Are Created When the Costs of Offering