What is an economy of scale?
A)Paying off variable costs as soon as possible
B)Spreading fixed costs over a large number of units
C)Introducing products into as many countries as possible
D)Attracting as many customers as possible
E)Avoiding finance charges by assuming less debt

Question

Quizplus · Accepted Answer

Economy of scale refers to the cost advantage that arises with increased output of a product, where fixed costs are spread over a larger number of units, reducing the cost per unit.

What Is an Economy of Scale