Question

When antonia's carpet company doubled in size, average (per unit) costs of production increased. this is an example of?

Answer 1

The appropriate response is economies of scale. It is the cost advantage that emerges with expanded yield of an item. Economies of scale emerge in view of the converse connection between the amount delivered and per-unit settled expenses; i.e. the more noteworthy the amount of a decent created, the lower the per-unit settled cost in light of the fact that these expenses are spread out finished a bigger number of products. Economies of scale may likewise decrease variable expenses per unit in light of operational efficiencies and collaborations.