Economies that exist when increasing production leads to a less-than-proportionate increase in costs are known as economies of _________.
A)scale
B)scope
C)dual currency boards
D)exposure netting

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing the scale of production leads to a decrease in the average cost of production. This is because fixed costs can be spread out over a higher level of production, leading to a lower per unit cost.

Economies That Exist When Increasing Production Leads to a Less-Than-Proportionate