Economies of scale are reductions in average a Total cost th

Economies of scale are reductions in average:

a.) Total cost that result from declining average fixed costs.

b.) Fixed cost that results from reducing the firms scale of operations.

c.)Total cost that result from using operations of large size.

d.) Fixed cost resulting from improve technology and production efficiency.

Solution

Economies of scale are reductions in average a) Total costs that result fRom declining average fixed costs.

For example when we buy Something like stationary in bulk or in large quantities, theere is a decline in price of per unit of the pencil with an increase in the number of units bought, with a resulting decrease in overall cost to us.