Use the table below to answer the following questions.
Table 11.4.1
Swanky's output levels

-Refer to Table 11.4.1, which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day. If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2, the factory experiences
A)economies of scale.
B)constant returns to scale.
C)diseconomies of scale.
D)constant marginal product.
E)minimum efficient scale.

Question

Use the table below to answer the following questions.
Table 11.4.1
Swanky's output levels
 
-Refer to Table 11.4.1, which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day. If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2, the factory experiences
A)economies of scale. 
B)constant returns to scale. 
C)diseconomies of scale. 
D)constant marginal product. 
E)minimum efficient scale.

Quizplus · Accepted Answer

Economies of scale occur when increasing the inputs (knitting machines and workers) leads to a more than proportional increase in output, indicating increased efficiency.

Use the Table Below to Answer the Following Questions