Assume that Telus initially does not sell enough mobile phone packages to realize economies of scale.To reach economies of scale, Telus must

Question

Quizplus · Accepted Answer

Economies of scale refer to the decrease in average total cost as a result of increasing production. Therefore, to reach economies of scale, Telus must produce more packages and sell them, which would lower the per-unit cost of production and lower the average total cost. Hence, the correct answer is (A) produce and sell more packages at a lower average total cost.

Assume That Telus Initially Does Not Sell Enough Mobile Phone