Josephina Owns a Boxing Gym

question 29

Multiple Choice

Josephina owns a boxing gym.She recently expanded the size of her gym by adding another boxing ring and moving into a larger building so that she can serve more clients.How would Josephina know if she is experiencing economies of scale from increasing the size of her boxing gym?

• A) Her average cost per client increases.
• B) Her total cost increases.
• C) Her average cost per client remains the same.
• D) Her average cost per client decreases.
• E) Her total cost remains unchanged.