Refer to Figure 21.5.Economies of scale occur in the following range of factory sizes
A) #1 to #2.
B) #1 to #3.
C) #3 only.
D) #1 to #5.

Name: Refer to Figure 21.5.Economies of scale occur in the following range of factory sizes A) #1 to #2. B) #1 to #3. C) #3 only. D) #1 to #5.
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Question

Refer to Figure 21.5.Economies of scale occur in the following range of factory sizes
A) #1 to #2. 
B) #1 to #3. 
C) #3 only. 
D) #1 to #5.

Quizplus · Accepted Answer

From Figure 21.5, we can see that economies of scale begin at factory size #1 and continue until factory size #3. Beyond that point, there are no further economies of scale. Therefore, the correct answer is B, " #1 to #3."