When the cost of producing a unit of a good falls as its output rate increases" is the definition of A

Business Dec 10, 2020

When the cost of producing a unit of a good falls as its output rate increases" is the definition of

A. economic efficiency.

B. economies of scale.

C. economies of scope.

D. technological efficiency

Expert Solution

The correct answer is option B. economies of scale.

In economics, economies of scale is when the cost of producing a unit of a good falls as its output rate increases. It is a benefit and an advantage on the part of the business entity. It decreases average cost while production expands.So, the statement above is clearly what economies of scale about.

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