Asked by Mckenna Grimm on May 09, 2024
Verified
A firm that is able to use its inputs more efficiently as it increases production in the long run BEST demonstrates:
A) economies of scale.
B) diseconomies of scale.
C) labor-intensive production.
D) capital-intensive production.
Economies of Scale
The cost benefits that organizations gain from their operation size, where the cost for each unit of output typically reduces as the scale increases.
Inputs
Inputs are the resources used in the production process to create goods or services, including labor, raw materials, machinery, and capital.
Production
The process of creating goods or services by combining labor, machinery, and materials resources.
- Acquire insight into the theories of economies of scale, constant returns to scale, and diseconomies of scale.
- Identify the correlation between the amount of inputs and the efficiency of production.
Verified Answer
Learning Objectives
- Acquire insight into the theories of economies of scale, constant returns to scale, and diseconomies of scale.
- Identify the correlation between the amount of inputs and the efficiency of production.
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