When a Firm Operates at an Output Level of 9,000

question 9

Multiple Choice

When a firm operates at an output level of 9,000 units, the per-unit cost is $5. When the production is between 10,000-12,000 units, the per-unit cost is $4. At a production level of 13,000 units, the production cost is again $5 per unit. At 14,000 units and above, the production cost increases further. At what output level does the firm experience economies of scale?

• A) 9,000 units
• B) 11,000 units
• C) 13,000 units
• D) 15,000 units

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Definitions:

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Refers to possessions or assets that are owned by an individual or entity, including physical items, real estate, and intellectual rights.

Education Emphasis

The particular focus or importance placed on learning and academic achievement within a culture, system, or practice.

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A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development.