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14) The Anderson family operates a bakery that sells donuts. Last year, most production was done by hand. This year, the family was able to
14) The Anderson family operates a bakery that sells donuts. Last year, most production was done by hand. This year, the family was able to move into a larger facility with specialized and automated production equipment. Why did the firm experience economies of scale? A) Total costs remained the same, but output increased, so average cost fell. B) Total cost decreased and output increased C) It eliminated all problems associated with diminishing marginal product D) Total costs increased at a slower rate than total output, so average cost fell
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