Economies of Scale Occur Because Expenses Are Distributed Across a Greater

question 43

True/False

Economies of scale occur because expenses are distributed across a greater number of items.

---

Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.

Average Product

In economics, the output produced per unit of input, used to measure productivity efficiency.

Marginal Product

The increase in output that results from a one-unit increase in the input, holding all other inputs constant.

Average Product

The output produced per unit of input, for example, the amount of goods produced per worker or per machine in a given time period.