Responses
A business increases its production of widgets, and the cost of producing each widget decreases.
A business increases its production of widgets, and the cost of producing each widget decreases.
A business decreases its production of widgets, and the cost of producing each widget decreases.
A business decreases its production of widgets, and the cost of producing each widget decreases.
A business increases its production of widgets, and the total cost of production decreases.
A business increases its production of widgets, and the total cost of production decreases.
A business decreases its production of widgets, and the total cost of production decreases.
1 answer
The correct example of economies of scale is:
A business increases its production of widgets, and the cost of producing each widget decreases.
This reflects the essence of economies of scale, where increasing production leads to a lower cost per unit due to factors such as bulk purchasing of materials, improved operational efficiencies, and spreading fixed costs over more units of output.
