The ABC Company manufactures routers that are used to provide high-speed internet service.ABC sells an average of 1000 routers each month,but to exhaust economies of scale in its industry,ABC would have to sell 3000 routers each month.Therefore,
A) ABC is experiencing diseconomies of scale.
B) ABC is experiencing diminishing returns.
C) to reach minimum efficient scale, ABC would have to sell at least 3000 routers each month.
D) ABC will soon go out of business.
Correct Answer:
Verified
Q201: Over the past twenty years, the number
Q205: Explain how the listed events (a-d)would affect
Q209: Figure 6.9 Q212: If production displays economies of scale, the Q214: Economies of scale exist as a firm Q222: All of the following statements are true Q231: If production displays diseconomies of scale, the Q234: The long-run average cost curve shows Q235: At the minimum efficient scale Q236: The minimum efficient scale is
A)the lowest
A)all possible economies
A)the level of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents