Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics Foundations of Business Analysis and Strategy

Authors: Christopher Thomas, S. Charles Maurice

11th edition

978-0078021718

More Books

Students also viewed these Economics questions

Question

What is innovation action planning? LO-1

Answered: 1 week ago