The concept of economies of scale means that as the measure of output goes up, average costs of production decline—at least up to a point.
Therefore, option B is correct.
Economies of scale can be described as a concept in economics which can be regarded as the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time.
It should be noted that the decrease in cost per unit of output enables an increase in scale, however in broader term Economies of scale serves as the the phenomenon where the average costs per unit of output decrease with respect to the increase in the scale or magnitude of the output being produced by a firm.
Therefore, option B is correct.
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