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Kendall Schmidt
on Oct 12, 2024

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The necessary condition(s) to realize economies of scale include

A) having the financial resources for the high capital costs.
B) having sufficient demand for the product.
C) both financial resources for the high capital costs and sufficient demand for the product.

Economies Of Scale

The cost advantage that arises with increased output of a product, where the cost per unit decreases as production expands.

Financial Resources

Funds available to a business or individual for spending in the form of cash, liquid securities, and credit lines.

High Capital Costs

Expenses incurred in acquiring or upgrading physical assets such as buildings and machinery, which can be a barrier to entry for new companies.

  • Identify the conditions under which economies of scale are realized.
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NC
Nicola ClougherOct 13, 2024
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