Use the table below to answer the following questions.
Table 10.4.1
Swanky's output levels
-Refer to Table 10.4.1,which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day.If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2,the factory experiences
A)economies of scale.
B)constant returns to scale.
C)diseconomies of scale.
D)constant marginal product.
E)minimum efficient scale.

Question

Use the table below to answer the following questions.
Table 10.4.1
Swanky's output levels 
-Refer to Table 10.4.1,which represents Swanky's production possibilities as the firm varies the quantities of knitting machines and workers per day.If Swanky increases the number of knitting machines from 1 to 2 and increases the number of workers employed from 1 to 2,the factory experiences
A)economies of scale. 
B)constant returns to scale. 
C)diseconomies of scale. 
D)constant marginal product. 
E)minimum efficient scale.

Quizplus · Accepted Answer

When both inputs (knitting machines and workers) are increased and the output increases more than proportionally, it indicates economies of scale, meaning the firm is becoming more efficient with larger production.

Use the Table Below to Answer the Following Questions