When Company X increases its production volume by 1%,the firm's total cost of production increases by less than 1%.This is an example of ________.

A) diseconomies of scale
B) economies of scale
C) the supply chain
D) the value chain

This is an example of economies of scale, where as production volume increases, the average cost of production decreases. In this case, the cost does not increase proportionally with the increase in production, indicating that the company is experiencing cost advantages as it increases its output.