Question

__________are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases. a. Diseconomies of scale b. Economies of scale c. Safety capacities d. Unfocused factories

Answer 1

Answer:

The answer is B.

Explanation:

Economies of scale enjoy cost advantage. Companies that have economies of scale can produce large output with lower cost of inputs. They are always a big firm. Cost of production (inputs) and volume of production (outputs) are inversely related.

Diseconomies of scale is the opposite. Here, unit cost of production (inputs) increases as output increases. Inputs and outputs are directly related.