Question

Suppose that a firm's long-run average total costs of producing custom wooden picnic tables is $300 when it produces 10,000 tables and $325 when it produces 11,000 tables. for this range of output, the firm is experiencing
a. economies of scale.

b. constant returns to scale.

c. diseconomies of scale.

d. specialization.

Answer 1

I think the most appropriate answer would be B.



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