When higher levels of output cost less per unit to produce,the facility realizes
A)best operating level.
B)capacity cushion.
C)diseconomies of scale.
D)economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale refer to the phenomenon where increasing the scale of production leads to a decrease in the average cost per unit produced. This means that as the facility produces more output, the cost per unit decreases, allowing for greater efficiency and profitability.

When Higher Levels of Output Cost Less Per Unit to Produce,the