Question
Which of the following statements about production technologies is correct? A. Large firms experience economies of scale, whereas small firms experience diseconomies of scale. B.
Which of the following statements about production technologies is correct?
A. Large firms experience economies of scale, whereas small firms experience diseconomies of scale.
B. Increasing returns to scale implies that the average cost of production decreases as output increases.
C. Large scale production is advantageous to the firm if the production technology exhibits economies of scale or increasing returns to scale.
D. Network effects refer to the advantages of combining multiple firms' production technologies together.
Select one:
a.B, C
b.C
c.A, B, C
d.A, B, C, D
e.C, D
???
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