A Group of Business People Are Having Coffee

Multiple Choice

A group of business people are having coffee. Which of the following quotations describes economies of scale?

A) "The new production process we've installed uses less capital and labour than the old one."
B) "The new assembly line has higher capital costs, but the fall in workers' hours has lowered overall costs."
C) "The costs of per-unit production have fallen dramatically as we have increased the length of the production runs."
D) "Despite the higher costs of negotiating the contracts, hiring the cleaning firm is much cheaper than using our own staff."
E) "The computer servicing people we have hired work very well as an integrated problem-solving group."