Economies of scale exist when the
A) total cost of production falls as the output increases.
B) cost of producing a unit of a good falls as its output decreases.
C) cost of producing a unit of a good falls as its output increases.
D) firm uses specialized resources to produce a range of goods and services.
C
You might also like to view...
Refer to Figure 13-4. Should the firm represented in the diagram continue to stay in business despite its losses?
A) No, it is not able to cover its fixed cost. B) Yes, it should increase its revenue by raising its price. C) Yes, its total revenue covers its variable cost. D) No, it should shut down.
The aggregate demand curve
a. is identical to the AE curve. b. shows the amounts of real output that will be demanded at various price levels. c. shows the amount of real output that will be demanded at various levels of income. d. shows the amount of income that will be earned at various price levels.