Question:
Economies of scale exist if:
| A. |
As the amount of capital increases, the cost of producing per unit rises |
B. |
As the amount of capital increases, the cost of producing per unit falls |
C. |
As the amount of capital increases, the marginal cost rises |
D. |
As the amount of capital increases, the marginal physical product falls |
Answer» b. As the amount of capital increases, the cost of producing per unit falls |
| Note: |
The above multiple-choice question is for all general and Competitive Exams in India. |
