Exhibit 7-15 Long-run average cost

In Exhibit 7-15, economies of scale exist up to:

Name: Exhibit 7-15 Long-run average cost In Exhibit 7-15, economies of scale exist up to:
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Question

Exhibit 7-15 Long-run average cost

In Exhibit 7-15, economies of scale exist up to:

Quizplus · Accepted Answer

The point where economies of scale end and constant returns to scale begin is where the long-run average cost curve begins to rise. In the given exhibit, this occurs at around 1,000 units of output per week. Therefore, economies of scale exist up to 1,000 units of output per week.

Exhibit 7-15 Long-Run Average Cost