One of the Most Crucial Principles Used and Evaluated by Managers

Multiple Choice

One of the most crucial principles used and evaluated by managers is the notion of economies of scale. This refers to __________.

A) increases in per unit costs as the volume of goods and services produced by a firm increases
B) decreases in per unit costs as the volume of goods and services produced by a firm decreases
C) decreases in per unit costs as the volume of goods and services produced by a firm increases
D) decreases in total costs as the volume of goods and services produced by a firm increases