Suppose there are economies of scale in the production of a specialized memory chip that is used in manufacturing microwaves.This suggests that the microwave industry is a decreasing-cost industry.

Question

Quizplus · Accepted Answer

If there are economies of scale in the production of the specialized memory chip, it means that as the production volume increases, the average cost of production decreases. This leads to lower costs for microwave manufacturers, which can lead to lower prices for consumers and increased demand for microwaves, ultimately leading to further production volume and lower costs. As a result, the microwave industry is a decreasing-cost industry.

Suppose There Are Economies of Scale in the Production of a Specialized