The total cost of producing one unit is $50.The total cost of producing two units is $75.At a production level of two units,the cost function exhibits
A) economies of scale.
B) rising average costs.
C) increasing marginal costs.
D) constant returns to scale.

Question

Quizplus · Accepted Answer

The cost of producing one unit is $50, and the cost of producing two units is $75, indicating that the cost per unit decreases as the quantity produced increases. This is a characteristic of economies of scale.

The Total Cost of Producing One Unit Is $50