According to economies of scale,each new unit that a company manufactures is ________.

A) more expensive to produce than the previous unit
B) less expensive to produce than the previous unit
C) less expensive to produce than the next unit
D) as expensive to produce as all other units

Economies of scale refer to the cost advantage a company gains by increasing its production volume. This means that as a company produces more units, it can spread its fixed costs (e.g., rent, salaries) over a larger number of units, making each unit less expensive to produce than the previous one. Therefore, choice B is the correct answer.