Asked by tabatha nieves on May 05, 2024

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A university that benefits from lower costs per enrolled student as it builds more buildings and enrolls more students is an example of a service provider with:

A) economies of scale.
B) diseconomies of scale.
C) increasing opportunity costs.
D) scale reduction.

Economies of Scale

The reduction in per-unit production costs resulting from an increase in the scale of production.

Service Provider

A company or an individual that offers services to others in exchange for payment, such as telecommunications, utilities, or healthcare.

Opportunity Costs

The cost of the most favorable alternative that is lost by deciding on a particular option.

  • Attain knowledge about the concepts of economies of scale, constant returns to scale, and diseconomies of scale.
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AA
amirah awang anakMay 12, 2024
Final Answer :
A
Explanation :
The situation described indicates that the university is experiencing economies of scale, as it is able to reduce its costs per student by increasing the scale of its operations.