-The cost data in the above table data show that production is characterized by
A) economies of scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) More information is needed to answer the question.

Question

-The cost data in the above table data show that production is characterized by
A) economies of scale. 
B) constant returns to scale. 
C) decreasing returns to scale. 
D) More information is needed to answer the question.

Quizplus · Accepted Answer

Economies of scale are present when the average cost of production decreases as the quantity of output increases. In this case, the average cost of production decreases from $10 to $8 as the quantity of output increases from 100 to 200 units.

-The Cost Data in the Above Table Data Show That