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Economies of scale occur when:

Economies of scale occur when:
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Average cost falls with expansion
  • B Fixed cost increases sharply
  • C Output falls continuously
  • D Revenue becomes negative
Correct Answer: Option A
Explanation:
Economies of scale happen when increasing the scale of production leads to lower average costs because of efficiency and specialization.

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