Asked by
Deborah Gonzalez
on Dec 11, 2024Verified
If a firm doubles all of its inputs and its output triples, it is said to be experiencing
A) diminishing marginal returns.
B) increasing marginal returns.
C) diseconomies of scale.
D) economies of scale.
E) constant average costs.
Tripling Output
The act of increasing the production or output of goods and services threefold, signifying significant growth or scaling up of operations.
Economies of Scale
Cost advantages companies experience when production becomes efficient, as the cost per unit of output decreases with increasing scale.
- Elucidate the circumstances in which companies benefit from economies of scale.
Verified Answer
CC
Learning Objectives
- Elucidate the circumstances in which companies benefit from economies of scale.
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