Question

Economies of scale are: A) countries that specialize in selling devices for measuring weight B) the advantages of large-scale production that reduce average cost as quantity ncreases C)the advantages of small-scale production that reduce average cost as quantity decreases. D) regulations that specify a minimum firm size

Answer 1

Step-by-step explanation:

Economies of scale are correctly described as:

B) the advantages of large-scale production that reduce average cost as quantity increases.

Economies of scale refer to the cost advantages that a company can achieve as it increases its level of production. As the quantity of goods or services produced increases, the average cost per unit typically decreases, resulting in cost savings and improved efficiency. This concept is a fundamental aspect of economics and business strategy, emphasizing the cost advantages associated with larger-scale production.