Economies of Scale Quiz

The fluctuation in production costs based on market demand

The increase in production costs as the scale of production decreases

The constant production costs regardless of the scale of production

The decrease in production costs as the scale of production increases (correct)

The constant production costs regardless of the scale of production

The decrease in production costs as the scale of production increases

The increase in production costs as the scale of production decreases (correct)

The fluctuation in production costs based on market demand

The cost disadvantages faced by a business due to its size and scale of operation

The cost advantages gained by a business due to its size and scale of operation (correct)

The cost advantages gained by a business due to external factors such as industry growth

The cost disadvantages faced by a business due to external factors such as industry growth

<p>B. The decrease in production costs as the scale of production increases.</p> Signup and view all the answers

<p>A. The increase in production costs as the scale of production decreases.</p> Signup and view all the answers

<p>A. Internal economies of scale refer to cost reductions within a specific business, while external economies of scale refer to cost reductions in the industry as a whole.</p> Signup and view all the answers