Asked by
Kendall Schmidt
on Oct 12, 2024Verified
The necessary condition(s) to realize economies of scale include
A) having the financial resources for the high capital costs.
B) having sufficient demand for the product.
C) both financial resources for the high capital costs and sufficient demand for the product.
Economies Of Scale
The cost advantage that arises with increased output of a product, where the cost per unit decreases as production expands.
Financial Resources
Funds available to a business or individual for spending in the form of cash, liquid securities, and credit lines.
High Capital Costs
Expenses incurred in acquiring or upgrading physical assets such as buildings and machinery, which can be a barrier to entry for new companies.
- Identify the conditions under which economies of scale are realized.
Verified Answer
NC
Learning Objectives
- Identify the conditions under which economies of scale are realized.