What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production?

Question

Quizplus · Accepted Answer

The situation described is an example of economies of scale, which refers to the cost advantages that a firm can achieve by increasing the scale of its operations. By expanding its operations and using computerization to reduce per-unit costs, the aluminum plant is able to take advantage of economies of scale and produce its goods more efficiently. Infrastructure refers to the physical and organizational structures needed for an economy to function, while human capital refers to the skills, knowledge, and experience of workers. Network effects refers to the increase in value of a product or service as more people use it.

What Economic Concept Would Be Most Closely Associated with a Situation