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    5. We quite often use the term economies of scale. What does this mean?

    Question

    We quite often use the term economies of scale. What

    does this mean?
    A Reduction in the unit cost of distribution Correct Answer Incorrect Answer
    B Increase in the unit cost of production Correct Answer Incorrect Answer
    C Addition to the unit cost of distribution Correct Answer Incorrect Answer
    D Reduction in the unit cost of production Correct Answer Incorrect Answer

    Solution

    Economies of scale means reduction in the unit cost of production.

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