-In the above figure, economies of scale are present up to an output level of
A) 5,000 pounds of coffee.
B) 10,000 pounds of coffee.
C) 13,000 pounds of coffee.
D) 15,000 pounds of coffee.

Question

-In the above figure, economies of scale are present up to an output level of
A) 5,000 pounds of coffee. 
B) 10,000 pounds of coffee. 
C) 13,000 pounds of coffee. 
D) 15,000 pounds of coffee.

Quizplus · Accepted Answer

Economies of scale occur when the average cost per unit decreases as output increases. The figure likely shows a cost curve that decreases up to 10,000 pounds of coffee, indicating economies of scale up to that point.

-In the Above Figure, Economies of Scale Are Present Up