When Carmakers Began to Cut the Costs of Producing Cars

Multiple Choice

When carmakers began to cut the costs of producing cars by designing the chassis, engines, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. This idea best illustrates:

A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) diminishing marginal product.