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Which of the following least likely describes a firm that is experiencing economies of scale? Select the correct answer below: A firm produces hand-painted plates.
Which of the following least likely describes a firm that is experiencing economies of scale? Select the correct answer below: A firm produces hand-painted plates. The firm has no fixed costs, any worker for the firm takes the same amount of time to paint one item regardless of how many items they paint, and the firm cannot receive any discounts for ordering raw materials in bulk. In order to manufacture its product, a firm must purchase one very expensive piece of equipment. Once it has that piece of equipment, the firm can produce as much of the product as it wants at almost no additional cost. As the number of workers at a firm increases, the firm has almost unending opportunities to further specialize the tasks its workers complete, and in each case specialization leads to greater efficiency. In order to supply a utility to a house, a utility company must connect the house to some part of its existing infrastructure
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