Question

When a firm increases its output by changing its scale of operations, the benefits that it experiences are called the economies of scale.

Name: Problem 3, Chapter 9: Managerial Economics
Uploaded: 2021-09-24T17:20:02-08:00
Duration: 3 min 19 s
Channel: Pavitr Ahuja
Description: When a firm increases its output by changing its scale of operations, the benefits that it experiences are called the economies of scale.

   When a firm increases its output by changing its scale of operations, the benefits that it experiences are called the economies of scale.

Managerial Economics

Vanita Agarwal " 1st Edition

Chapter 9, Problem 3

Instant Answer

Solved by Expert Pavitr Ahuja

09/24/2021

Step 1

Economies of scale are the cost advantages that firms obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. Show more…

Show all steps

Thanks for your feedback!

When a firm increases its output by changing its scale of operations, the benefits that it experiences are called the economies of scale.

Play audio

Feedback

Pavitr Ahuja and 67 other educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Key Concepts

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output and operational efficiencies are achieved.

Please give Ace some feedback