Question

When a firm doubles its inputs and finds that its output has more than doubled, this is known as: select one:

Answer 1

When a firm doubles its inputs and finds that its output has more than doubled, this is known as economies of scale. When a business has reached economies of scale, that means there is an equal amount saved in costs by increasing the production amount. The more you produce the lower the cost is to produce those items and the more amounts of items you have to sell.