The cost-output elasticity is used to measure:

A) input substitution flexibility.
B) the slope of the firm's expansion path.
C) the slope of long-run average cost.
D) the slope of long-run marginal cost.
E) economies of scale.

Cost-output Elasticity

Cost-output elasticity measures the responsiveness of the cost of production to changes in the quantity of output produced, indicating the scale economies in production.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Marginal Cost

The expenditure required to produce an additional unit of a product.