Which of the following statements is true about economies of scale?
A. Economies of scale lead to an increase in the average unit cost of a product.
B. Attaining economies of scale increases a firm's profitability.
C. The ability to spread variable costs over a large volume is a source of economies of scale.
D. Economies of scale result due to the increase in the perceived value of a product.
E. Economies of scale refer to cost savings that come from learning by doing.
Answer: B. Attaining economies of scale increases a firm's profitability