UGC NET Exam  >  UGC NET Questions  >  Which of the following is correct regarding e... Start Learning for Free
Which of the following is correct regarding economies of scale?
  • a)
    Reduction in the unit cost of distribution
  • b)
    Reduction in the unit cost of production
  • c)
    Reduction in the total cost of distribution
  • d)
    Addition to the unit cost of production
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following is correct regarding economies of scale?a)Reduc...
The correct answer is Reduction in the unit cost of production.
  • Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output.
  • The advantage arises due to the inverse relationship between the per-unit fixed cost and the quantity produced.
  • The greater the quantity of output produced, the lower the per-unit fixed cost.
  • Economies of scale also result in a fall in average variable costs (average non-fixed costs) with an increase in output.
  • This is brought about by operational efficiencies and synergies as a result of an increase in the scale of production.
  • Economies of scale can be realized by a firm at any stage of the production process.
  • In this case, production refers to the economic concept of production and involves all activities related to the commodity. 
Free Test
Community Answer
Which of the following is correct regarding economies of scale?a)Reduc...
The correct answer is Reduction in the unit cost of production.
  • Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output.
  • The advantage arises due to the inverse relationship between the per-unit fixed cost and the quantity produced.
  • The greater the quantity of output produced, the lower the per-unit fixed cost.
  • Economies of scale also result in a fall in average variable costs (average non-fixed costs) with an increase in output.
  • This is brought about by operational efficiencies and synergies as a result of an increase in the scale of production.
  • Economies of scale can be realized by a firm at any stage of the production process.
  • In this case, production refers to the economic concept of production and involves all activities related to the commodity. 
Explore Courses for UGC NET exam
Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer?
Question Description
Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UGC NET. Download more important topics, notes, lectures and mock test series for UGC NET Exam by signing up for free.
Here you can find the meaning of Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following is correct regarding economies of scale?a)Reduction in the unit cost of distributionb)Reduction in the unit cost of productionc)Reduction in the total cost of distributiond)Addition to the unit cost of productionCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice UGC NET tests.
Explore Courses for UGC NET exam

Top Courses for UGC NET

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev