A Company Can Expand Its Product Line in Two Ways

question 111

Short Answer

A company can expand its product line in two ways: by line ________ or by line ________.

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Definitions:

Returns to Scale

The change in output resulting from a proportional change in all inputs used in the production process.

Long-Run Average Cost

is the average cost per unit of output achieved when all factors of production, including capital, are variable, often represented by a curve showing economies of scale.

Production Costs

The expenses incurred in the process of creating a product or service, including materials, labor, and overhead.

Fixed Cost

Expenses that do not change with the level of production or sales.