Which of the following implies reduced unit costs as size or volume of assets increases?
A)Diseconomies of scale.
B)Economies of scale.
C)Economies of scope.
D)Diseconomies of scope.
E)Constant returns to scale

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that a company can achieve as its production scale increases. As volume or size increase, the cost per unit decreases. This is because fixed costs are spread over a larger number of units, and there are opportunities for specialization and division of labor, among other factors.

Which of the Following Implies Reduced Unit Costs as Size