Which of the Following Best Describes Economies of Scale

Multiple Choice

Which of the following best describes economies of scale?

A) The average cost of production decreases as the level of output increases.
B) The effects on costs related to managerial ability and other hard-to-quantify factors.
C) Cost savings are realized from using many of the same inputs to produce multiple products.
D) The average cost of production increases as the level of output increases.
E) Cost increases are realized from using many of the same inputs to produce multiple products.