The ability to spread fixed costs over a large volume is one of the so

QUESTION

The ability to spread fixed costs over a large volume is one of the sources of economies of scale.

Indicate whether the statement is true or false.

ANSWER

TRUE
Economies of scale have a number of sources. One is the ability to spread fixed costs over a large volume. Fixed costs are the costs required to set up a production facility, develop a new product, and the like.