Economics
posted by CrissyXD .
What does this sentence mean?
"Economies of scale are experienced when average costs per unit of production fall as the size of output grows"
Respond to this Question
Similar Questions

Advanced Production
Montegut Manufacturing produces a product for which the annual demand is 10,000. Production averages 100 per day, while demand is 40 per day. Holding costs are $1.00 per unit per year;setup costs $200.00. If they wish to produce this … 
Economics
A PURE MONOPOLIST SELLS OUTPUT FOR $4 PER UNIT. THE MARGINAL COST IS $3, AVERAGE VARIABLE COSTS ARE $3.75, AND AVERAGE TOTAL COSTS ARE $4.25. THE MARGINAL RVENUE IS $3. WHAT IS THE SHORT RUN CONDITION FOR THE MONOPOLIST AND WHAT OUTPUT … 
managerial economics
Question #6 The owner of Taco Joe’s has estimated that if he lowers the price of a burrito from $2.00 to $1.50, he will increase sales from 400 to 500 burritos per day. The demand for burritos is A) elastic. B) inelastic. C) unitary … 
calculus
A company manufacturing surfboards has fixed costs of $300 per day and total costs of $5100 per day for a daily output of 20 boards. Assume the total cost per day C(x) is linearly related to the total output per day x. Write an equation … 
calculus
a company maufacturing surfboards has fixed costs of $300 per day and total costs of $5100 per day for a daily output of 20 boards. Assume the total cost per day C(x) is linearly related to the total output per day x. write an equation … 
ECON
A pure monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is … 
Economics
5. A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs. Marginal Cost (MC): $5 per unit Fixed Cost (FC): $20 Total Cost (TC): $25 Average … 
economics
could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00 
economics
could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00 
math
The table shows the average production data for three products over the last month. The difference between the costs and the sale price is the company profit for one unit. If a new production method allows the labor costs of Product …