Economics · Production and Costs
How do economies of scale impact production costs?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Economies of scale have no influence on production costs.
- 2Economies of scale indicate a direct proportionality between the average fixed cost and production output.
- 3Economies of scale occur when the average total cost decreases with increased production, leading to lower per-unit production costs.✓
- 4Economies of scale refer to the reduction in average total cost as production increases, resulting in increased per-unit costs.
Correct answer
Economies of scale occur when the average total cost decreases with increased production, leading to lower per-unit production costs.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Production and Costs MCQs →Want more practice questions on Production and Costs?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Production and Costs