Figure 7.6.1
-A movement from A to C in Figure 7.6.1. may represent:
A) economies of scale.
B) diseconomies of scale.
C) learning.
D) economies of scope.
E) diseconomies of scope.

Question

Figure 7.6.1
-A movement from A to C in Figure 7.6.1. may represent:
A) economies of scale. 
B) diseconomies of scale. 
C) learning. 
D) economies of scope. 
E) diseconomies of scope.

Quizplus · Accepted Answer

A movement from A to C represents learning, as the firm becomes more efficient in its operations with experience and practice. Economies of scale and economies of scope represent decreases in average cost with increased production and diversification, respectively. Diseconomies of scale and diseconomies of scope represent increases in average cost with increased production and diversification, respectively. None of these concepts are represented by a movement from A to C.

Figure 7.6.1 -A Movement from a to C in Figure 7.6.1. May