_____ occur when a firm enjoys declining unit costs as production increases over a relevant range of time.
A) Economies of scope
B) Network externalities
C) Economies of scale
D) Returns to scale

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm enjoys declining unit costs as production increases over a relevant range of time. This typically happens because the fixed costs associated with production are spread out over a larger number of units, resulting in lower average costs per unit.

_____ Occur When a Firm Enjoys Declining Unit Costs as Production