Whether or not a production process shows economies of scale depends on
A)the number of inputs used.
B)technology.
C)technology and input prices.
D)technology and output prices.

Question

Quizplus · Accepted Answer

Economies of scale are dependent on technology, that is, the methods and efficiency of production. Therefore, the correct answer is B. The number of inputs used, input prices, and output prices can also play a role in the cost of production, but the primary determinant of economies of scale is technology.

Whether or Not a Production Process Shows Economies of Scale