-In the above figure, between 5 and 10 units per hour, the firm experiences
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) decreasing total fixed costs.

Question

-In the above figure, between 5 and 10 units per hour, the firm experiences
A) economies of scale. 
B) diseconomies of scale. 
C) constant returns to scale. 
D) decreasing total fixed costs.

Quizplus · Accepted Answer

Economies of scale occur when increasing production leads to lower average costs, which is typically observed between certain output levels, such as 5 and 10 units per hour.

-In the Above Figure, Between 5 and 10 Units Per