Which of the following statements best fits with the concept of economies of scale?
A) Lower per unit costs as the production scale is increased.
B) Gains in efficiency due to producing with a smaller facility.
C) Higher per unit costs due to problems with communication, coordination, and bureaucratic red tape.
D) Producing a greater variety of output that utilizes similar types of raw materials.

Question

Quizplus · Accepted Answer

Economies of scale are based on the idea that large facilities allow fixed costs to be spread over more units of production.

Which of the Following Statements Best Fits with the Concept