A firm that is able to utilize more efficiently its inputs as it increases production in the long run is an example of:
A)economies of scale.
B)diseconomies of scale.
C)labor-intensive production.
D)capital-intensive production.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a company can achieve by increasing its scale of production. This can include the ability to utilize inputs more efficiently, leading to lower per-unit costs as production increases in the long run. Therefore, a firm that is able to utilize its inputs more efficiently as it increases production is an example of economies of scale.

A Firm That Is Able to Utilize More Efficiently Its