Production of a small quantity of an input is often _______as firms typically _______able to enjoy economies of scale.
A)unprofitable; are not
B)profitable; are
C)unprofitable; are
D)profitable; are not

Question

Quizplus · Accepted Answer

Production of a small quantity often leads to higher per-unit costs because firms are not able to achieve economies of scale, which makes small-scale production generally unprofitable.

Production of a Small Quantity of an Input Is Often