Table 13-13
Listed in the table are the long-run total costs for three different firms.
$$\begin{array} { | l | l | l | l | l | l | }
\hline \text { uantity } & \mathbf { 2 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } \
\hline \text { Firm A } & 100 & 100 & 100 & 100 & 100 \
\hline \text { Firm B } & 100 & 200 & 300 & 400 & 500 \
\hline \text { Firm C } & 100 & 300 & 600 & 1,000 & 1,500 \
\hline
\end{array}$$
-Refer to Table 13-13. Firm A is experiencing economies of scale.

Question

Table 13-13
Listed in the table are the long-run total costs for three different firms.
 $$\begin{array} { | l | l | l | l | l | l | } 
\hline \text { uantity } & \mathbf { 2 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } \
\hline \text { Firm A } & 100 & 100 & 100 & 100 & 100 \
\hline \text { Firm B } & 100 & 200 & 300 & 400 & 500 \
\hline \text { Firm C } & 100 & 300 & 600 & 1,000 & 1,500 \
\hline
\end{array}$$
-Refer to Table 13-13. Firm A is experiencing economies of scale.

Quizplus · Accepted Answer

Firm A's total cost remains constant as output increases, indicating that it is experiencing economies of scale, where average costs decrease as production increases.

Table 13-13 Listed in the Table Are the Long-Run Total

Table 13-13
Listed in the Table Are the Long-Run Total