Assume that 1366 Technologies initially does not sell enough solar wafers to realize economies of scale.To reach economies of scale,1366 Technologies must

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost advantage a company can achieve by increasing their production volume. In order for 1366 Technologies to realize economies of scale, they need to produce and sell more wafers. By doing so, they can spread their fixed costs over a larger output, leading to a lower average total cost. Therefore, the best choice is A, to produce and sell more wafers at a lower average total cost.

Assume That 1366 Technologies Initially Does Not Sell Enough Solar