The term _______________ refers to the reduction in unit cost achieved by producing a large volume of a product.
A) volume synergies
B) captured savings
C) economies of scale
D) rent effects
E) cost efficiencies

Question

Quizplus · Accepted Answer

Economies of Scale refers to the reduction in unit cost achieved by producing a large volume of a product. This means that as the production volume increases, the cost of production per unit decreases due to certain cost efficiencies.

The Term _______________ Refers to the Reduction in Unit Cost