Economies of scale exist when the ________ a unit of a good ________.
A) average cost of producing; falls as its output rate increases
B) price; falls as its input rate decreases
C) price; rises as its output rate increases
D) average cost of producing; rises as its input rate increases

Question

Quizplus · Accepted Answer

Economies of scale occur when the average cost of producing a unit decreases as the output rate increases, due to factors like spreading fixed costs over more units and operational efficiencies.

Economies of Scale Exist When the ________ a Unit of a Good