Economies of Scale Imply: (I) a Continuously Falling AC Curve;

question 74

Multiple Choice

Economies of scale imply: (i) a continuously falling AC curve; (ii) a larger output is more efficient than a smaller output.

• A)i and ii 
• B)i but not ii 
• C)ii but not i 
• D)neither i nor ii

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Definitions:

Producing Bagels

The process of making bagels, involving mixing, shaping, boiling, and baking dough in a manner specific to this type of bread.

Marginal Cost

Marginal cost is the additional cost incurred from producing one more unit of a good or service.

Producing Bagels

The process of making bagels, which involves mixing, shaping, boiling and then baking dough, typically in a commercial or artisanal bakery setting.

Total Cost

The complete cost of producing a specific quantity of goods or services, including fixed and variable costs.