In the Long Run the Local Coffee Shop Incurs Total

question 503

Multiple Choice

In the long run the local coffee shop incurs total costs of $625 when output is 1,250 cups of coffee and $750 when output is 1,500 cups of coffee. For this range of output, the coffee shop exhibits

• A)economies of scale.
• B)constant returns to scale.
• C)diseconomies of scale.
• D)efficient scale.