Economies of scale refers to the fact that as the
a. quantity of product produced in a given time period increases, the cost of manufacturing each unit increases.
b. quantity of product produced in a given time period increases, the cost of manufacturing each unit remains constant.
c. quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.
d. quantity of product produced in a given time period decreases, the cost of manufacturing each unit decreases.
Answer: quantity of product produced in a given time period increases, the cost of manufacturing each unit decreases.