Firm A produces 200 widgets and has a TC of $5000. It increases its factory size, increases output to 400 widgets and has a TC of $12.000.Firm B produces 400 widgets and has a TC of $12,000. It increases its factory sizes, increases output to 500 widgets and hn a TC M$15.000.Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increases output to 800 widgets and han a TC ot$24,000.Which of the following statements is true?O Firm A experiences economies of scale.O All three finns experience economies of scaleO Firm Cexperiences economies of scale.O Firm B experiences economies of scale.O None of the firms experience economies of scale.

Economies of scale is the situation when cost per unit falls with rise in production.

Firm A produces 200 widgets and has a TC of $5000. It increases its factory size, increases output to 400 widgets and has a TC of $12.000. Firm B produces 400 widgets and has a TC of $12,000 I increases its factory sizes, increases output to 500 widgets and han a TC o $15.000. Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increames output to 800 widgets and han a TC ot $24,000. Which of the following statements is true? O Firm A experiences economies of scale. O All three fins experience economies of scale. O Firm Cexperiences economies of scale. O Firm Bexperiences economies of scale. O None of the firms experience economies of scale.

Firm A produces 200 widgets and has a TC of $5000. It increases its factory size, increases output to 400 widgets and has a TC of $12.000. Firm B produces 400 widgets and has a TC of $12,000 I increases its factory sizes, increases output to 500 widgets and han a TC o $15.000. Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increames output to 800 widgets and han a TC ot $24,000. Which of the following statements is true? O Firm A experiences economies of scale. O All three fins experience economies of scale. O Firm Cexperiences economies of scale. O Firm Bexperiences economies of scale. O None of the firms experience economies of scale.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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