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The Development of Large-Scale Factory Production That Promoted a More

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The development of large-scale factory production that promoted a more efficient division of labor, allowed for the direct supervision of production, reduced transportation costs, and facilitated the use of big machinery is known as _____


Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Average Total Cost

A firm’s total cost divided by output (the quantity of product produced); equal to average fixed cost plus average variable cost.

Economies of Scale

Cost advantages that a business obtains due to expansion, leading to a reduction in the average cost per unit through increased production.

Diseconomies of Scale

The situation in which a business grows to a point where the costs per unit increase, opposed to saving costs, often due to managerial inefficiencies or complexity.

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