________ refers to the decline in per unit product costs as the absolute volume of production per period increases.
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Diseconomies of scope

Question

Quizplus · Accepted Answer

Economies of scale occur when increased production leads to lower per unit costs due to factors such as specialized equipment, division of labor, and bulk purchasing power. This allows companies to enjoy cost savings and potentially increase profitability as they increase their output volume.

________ Refers to the Decline in Per Unit Product Costs