Which of the following statements is true about economies of scale? A

QUESTION

Which of the following statements is true about economies of scale?

A. Economies of scale lead to an increase in the average unit cost of a product.

B. Attaining economies of scale increases a firm’s profitability.

C. The ability to spread variable costs over a large volume is a source of economies of scale.

D. Economies of scale result due to the increase in the perceived value of a product.

E. Economies of scale refer to cost savings that come from learning by doing.

ANSWER

B