Economies of scale

A. are only relevant to manufacturing industries.
B. refer to the rising scale on which efficiency improves as a result of cumulative experience and learning.
C. occur due to the presence of abundance resource endowments within a nation.
D. are difficult to achieve if fixed costs are high.
E. are the predictable decline in the average cost of producing each unit of output as a production facility gets larger and output increases.


Answer: E

Business

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