Figure 13-10
-Refer to Figure 13-10. The firm experiences economies of scale if it changes its level of output from
A) Q1 to Q2.
B) Q2 to Q3.
C) Q3 to Q4.
D) Q4 to Q5.

Question

Figure 13-10 
-Refer to Figure 13-10. The firm experiences economies of scale if it changes its level of output from
A) Q1 to Q2. 
B) Q2 to Q3. 
C) Q3 to Q4. 
D) Q4 to Q5.

Quizplus · Accepted Answer

Economies of scale occur when the average total cost of production decreases as the quantity of output increases. In Figure 13-10, the average total cost curve is downward sloping between Q1 and Q2, indicating that the firm experiences economies of scale in this range of output.

Figure 13-10 -Refer to Figure 13-10. the Firm Experiences Economies of Scale