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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