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(a) Why is it that when small firms get bigger (increase their scale), they frequently see their average total costs decrease? (b)Axcon is a small

(a) Why is it that when small firms get bigger (increase their scale), they frequently

see their average total costs decrease?

(b)Axcon is a small firm engage in theproduction of pens. The table below shows the firm's total costs(TC) and variable costs(VC) at each level of quantity.

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Quantity TC FC VC AFC AVC ATC MC (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) (RMOOO) 10 1 18 2 24 28 4 30 5 32 36 7 44

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