Question

Economies of scale can arise from: Group of answer choices High prices on bulk purchases of raw material inputs and component parts. An advantage gained by spreading fixed production costs over a large production volume. Poor production operations. Increased spending on marketing and advertising activities.

Answer 1

An advantage gained by spreading fixed production costs over a large production volume.

Step-by-step explanation:

Economies of scales refer to that scale where the larger quantity of an output having similar level fo fixed cost cause in less cost per unit. It could be occured from an advantage that could be benefit by distributing the fixed production cost over and above to the wider production volume

Therefore the above statement should be considered