The Concept of Economies of Scale Is Used for Achieving

question 91

True/False

The concept of economies of scale is used for achieving quality-based advantage.

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Definitions:

Average Variable Cost

It is calculated by dividing total variable costs by the total output produced, representing the variable cost per unit of output.

Variable Cost

Costs that change with the level of production or business activity, such as materials and labor.

Quantity of Output

Refers to the total amount of goods or services produced by a firm or an economy within a specific time period.

Total Cost

The overall expenditure associated with the creation of goods or provision of services, comprising both certain and variable costs.