Paul and Diane are two fishing fanatics who also supply local restaurants with fresh brook salmon. Paul uses a $20 rod and reel and catches 20 fish in one day. Diane places a $100 net all the way across the stream and at the end of the day she has caught 5,000 fish. Diane's ingenuity is an example of

Question

Quizplus · Accepted Answer

Diane's method shows economies of scale in fishing technology because she significantly increases the output (number of fish caught) with a relatively small increase in input cost (the cost of fishing equipment), compared to Paul's method.

Paul and Diane Are Two Fishing Fanatics Who Also Supply