An internal economies of scale is defined as
A)an industry with costs that fall for all firms.
B)a firm with falling costs over a specific level of output.
C)a firm with falling costs over a relatively large range of output.
D)a firm with falling costs over a relatively large range of output, but definite declining profits.

Question

Quizplus · Accepted Answer

An internal economies of scale refers to a situation where a firm experiences falling costs over a relatively large range of output. This can occur due to factors such as specialization of labor, bulk purchasing of inputs, or the use of more efficient technologies. These cost savings enable the firm to produce at a lower cost per unit and potentially increase profits. However, this does not necessarily mean that the firm's profits will continue to increase indefinitely, as there may be other factors that limit revenue or increase costs beyond a certain level of output.

An Internal Economies of Scale Is Defined as