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Kipish [7]
3 years ago
15

Why do producers use the economy of scale theory when they make business decisions

Social Studies
2 answers:
VladimirAG [237]3 years ago
7 0

Answer:i think the answer was to understand the impact on profits? not sure

Explanation:

Burka [1]3 years ago
6 0

Answer:

The economy of scale theory in microeconomics, refers to the power of an enterprise to achieve an optimal level of production at the lower cost, in other words, when the production of a company grows the costs of each unit produced is reduced, this guarantees higher revenues for the enterprise. It also responds to the laws of offer and demand, and assures that an enterprise do not exceed the production of the item, when it is not demanded by the consumers.

Explanation:

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Answer:

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3 years ago
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