Reductions in minimum average costs that come about through increases in the size of plants and equipment are called
A)Barriers to entry.
B)Economies to monopoly power.
C)Economies of scale.

Question

Quizplus · Accepted Answer

Economies of scale are the reductions in minimum average costs that come about through increases in the size of plants and equipment. Barriers to entry refer to obstacles that limit or prevent new firms from entering a market. Economies to monopoly power refers to the advantages that a monopolist has over competitors, such as the ability to set higher prices.

Reductions in Minimum Average Costs That Come About Through Increases