Economies of scale arise when
A)all inputs increase by the same amount.
B)one input increases and the others are held constant.
C)one input increases and the others decrease.
D)all inputs increase at the same rate.

Question

Quizplus · Accepted Answer

Economies of scale occur when increasing all inputs at the same rate leads to a more than proportional increase in output, reducing the average cost of production.

Economies of Scale Arise When