When we experience economies of scale this means that as production levels rise (we make more of something),the cost of supplies and cost of labor that goes into the production,goes down.
Economies of scale is when the cost of production goes down,as the level of production rises.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages a company can obtain when it increases production levels. With higher production volumes, fixed costs can be spread over more units, reducing the cost per unit. This includes both the cost of supplies and labor. Therefore, the statement is true.

When We Experience Economies of Scale This Means That as Production