Armaan6312 Armaan6312
  • 28-10-2019
  • Business
contestada

Economies of scale imply that within some range a firm can increase the size of operation and

Respuesta :

DelcieRiveria DelcieRiveria
  • 29-10-2019

Answer:

The average cost of production decreases.

Explanation:

Economies of scale refer to the situation when the increase in output causes the average cost of production to decrease. As production increases, companies become more efficient.  

The producers are able to reap the cost advantages as the scale of production increases. This happens because of specialization and division of labor.

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