Asked by unknown person on Jun 19, 2024
Verified
Economies of scale are also referred to as increasing returns to scale.
Economies of Scale
The economic benefits that businesses gain from their size of operations, where the expense per unit of production typically lowers as the scale increases.
Increasing Returns
A situation in which an increase in the scale of production results in a disproportionate increase in output, usually leading to lower average costs.
- Acquire insight into the consequences of technology and economies of scale for cost and industry adaptation processes.
Verified Answer
RM
Rajan MishraJun 21, 2024
Final Answer :
True
Explanation :
Economies of scale occur when increasing production leads to lower average costs, which is synonymous with the concept of increasing returns to scale, where output increases more than in proportion to an increase in all inputs.
Learning Objectives
- Acquire insight into the consequences of technology and economies of scale for cost and industry adaptation processes.
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