Cost advantages derived from a large sales volume are called economies of:?

    A)    scale.  ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

scale is the right word to set

It is A) Economies of Scale

Economies of scale, answer (A)

The benefits arising from expansion depend upon the effect of expansion on productive ... The reductions in cost associated with expansion are called economies of SCALE..   (A)

Often operational efficiency is also greater with increasing scale, leading to lower variable cost as well.

scale is the correct answer

Thank you for invitation sir

Economies of Scale

Definition

The cost advantage that arises with increased output of a product  because of the inverse relationship between the quantity produced and per-unit fixed costs