The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $25,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $11,000).

Note: AssumeQdenotes the quantity produced of a particular design.

Which of the following best represents the average cost function for producing any single design?

AC=$25000+$11

Q

AC=$25000+$11000

AC=$25000+$11

AC=$25000+$11

Q

Based on this information, production in any one single design------------------economies of scale.

A)does not exhibit

B)exhibits