A firm that is able to use its inputs more efficiently as it increases production in the long run best demonstrates:
A) economies of scale.
B) diseconomies of scale.
C) labor-intensive production.
D) capital-intensive production.

Question

Quizplus · Accepted Answer

Economies of scale occur when a firm becomes more efficient in its production process as it increases output, leading to a decrease in average costs in the long run.

A Firm That Is Able to Use Its Inputs More