Firm A produces 200 widgets and has a TC of $5000. It increases its factory size, increases output to 400 widgets and has a TC of $12.000. Firm B produces 400 widgets and has a TC of $12,000 I increases its factory sizes, increases output to 500 widgets and han a TC o $15.000. Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increames output to 800 widgets and han a TC ot $24,000. Which of the following statements is true? O Firm A experiences economies of scale. O All three fins experience economies of scale. O Firm Cexperiences economies of scale. O Firm Bexperiences economies of scale. O None of the firms experience economies of scale.
Firm A produces 200 widgets and has a TC of $5000. It increases its factory size, increases output to 400 widgets and has a TC of $12.000. Firm B produces 400 widgets and has a TC of $12,000 I increases its factory sizes, increases output to 500 widgets and han a TC o $15.000. Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increames output to 800 widgets and han a TC ot $24,000. Which of the following statements is true? O Firm A experiences economies of scale. O All three fins experience economies of scale. O Firm Cexperiences economies of scale. O Firm Bexperiences economies of scale. O None of the firms experience economies of scale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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