Suppose That in 2010 ABC Corp

question 76

Multiple Choice

Suppose that in 2010 ABC Corp. produced 500 million units of a good at an average cost of $2, and in 2011 ABC Corp. expanded its plant capacity and produced 600 million units at an average cost of also $2. In this range, one can conclude that ABC Corp. is experiencing:

• A)economies of scale.
• B)diseconomies of scale.
• C)neither economies of scale or diseconomies of scale.
• D)diminishing marginal product.