Some goods can be produced at low cost only if they are produced in large quantities.This phenomenon is called
A)marginal cost of production.
B)marginal benefit of size.
C)economies of scale.
D)economies of production.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantages that firms can achieve by producing on a larger scale. This means that certain goods can be produced at a lower cost when they are produced in larger quantities because the fixed costs of production, such as machinery and equipment, can be spread out over a larger number of units. This results in lower average costs per unit, making the product more affordable and competitive in the market.

Some Goods Can Be Produced at Low Cost Only If