Exhibit 7-14 Cost curves
-In Exhibit 7-14, economies of scale only exist for output levels up to:

Name: Exhibit 7-14 Cost curves -In Exhibit 7-14, economies of scale only exist for output levels up to:
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Question

Exhibit 7-14 Cost curves 
-In Exhibit 7-14, economies of scale only exist for output levels up to:

Quizplus · Accepted Answer

From the graph, we can see that economies of scale exist up to an output level of 2,000. After that point, the average total cost begins to increase, indicating diseconomies of scale. Therefore, the best choice would be B, 2,000.

Exhibit 7-14 Cost Curves