Question

multiple choice question what term describes reductions in per - unit production costs that result from increases in output levels?
○ economies of scale
○ marginal costs
○ diseconomies of scale
○ marginal benefits

Explanation:

• Economies of scale refer to the cost advantage where per-unit production costs fall as a firm increases its output level.
• Marginal costs are the additional cost of producing one more unit, not per-unit cost reductions from higher output.
• Diseconomies of scale are the opposite: per-unit costs rise as output increases.
• Marginal benefits are the additional gains from one more unit, unrelated to production costs.

Answer:

A. economies of scale