Exhibit 6-15 Long-run average cost

-In Exhibit 6-15,economies of scale exist up to:

Question

Exhibit 6-15 Long-run average cost
 
-In Exhibit 6-15,economies of scale exist up to:

Quizplus · Accepted Answer

From the graph, we can see that the long-run average cost decreases till the output level of 1,000 units per week. Beyond that, the long-run average cost remains constant, indicating that economies of scale do not exist beyond 1,000 units of output per week. Therefore, the best choice is B, which is 1,000 units of output per week.

Exhibit 6-15 Long-Run Average Cost