Question
Tech World (Pty) Ltd is a manufacturer of security equipment. One of its products is a closed-circuit television (CCTV) camera. Thabo is the production manager
Tech World (Pty) Ltd is a manufacturer of security equipment. One of its products is a closed-circuit television (CCTV) camera. Thabo is the production manager and he is very interested in managing the long-term cost of the company, because one of his key performance areas is the long-term production planning for the company. Thabo read that long-term average cost is a key indicator of scale economies and that a firm's level of total output together with its associated long-run total cost determine the type of scale economies the firm is experiencing. Thabo compiled the following table but is unsure how to use the data in the table to determine the different categories of scale economies for the company. He asked for your assistance in this matter.
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