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      Question

      Economics of scale means

      A reductions in unit cost of production Correct Answer Incorrect Answer
      B reductions in total cost of production Correct Answer Incorrect Answer
      C reductions in unit cost of distribution Correct Answer Incorrect Answer
      D addition to the unit cost of production Correct Answer Incorrect Answer

      Solution

      Economies of scale means reduction in unit of production. Economies of scale refers to reduced cost per unit that arise from increased total output of a product.

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