The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run.
If the three plant sizes shown are the only ones possible, then there are economies of scale in producing
A) up to 10 units of output, and diseconomies of scale after that.
B) up to 20 units of output, and diseconomies of scale after that.
C) up to 30 units of output, and diseconomies of scale after that.
D) up to 40 units of output, and diseconomies of scale after that.
Correct Answer:
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A)increase.
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