Question
Port Mann Bridge has 10 car lanes while Lions Gate bridge has only 3. In accordance with _____________ of scale, we would expect long run
Port Mann Bridge has 10 car lanes while Lions Gate bridge has only 3. In accordance with _____________ of scale, we would expect long run average cost to be ____________ for Port Mann bridge.
Select one:
a. economies of scale; lower
b. constant returns to scale; equal
c. economies of scale; higher
d. None of the answers offered are correct.
e. diseconomies of scale; lower
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Price theory and applications
Authors: Steven E landsburg
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