Exhibit 6-15 Long-run average cost

In Exhibit 6-15, economies of scale exist up to:

Name: Exhibit 6-15 Long-run average cost In Exhibit 6-15, economies of scale exist up to:
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Exhibit 6-15 Long-run average cost

In Exhibit 6-15, economies of scale exist up to:

Quizplus · Accepted Answer

The lowest point on the long-run average cost curve occurs at 1,000 units of output per week, indicating that economies of scale exist up to that point. Beyond 1,000 units, the firm experiences diseconomies of scale, leading to higher average costs.

Exhibit 6-15 Long-Run Average Cost