Answer:
Because of economies and diseconomies of scale.
Explanation:
Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.
Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.
Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.
Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Answer: Allocative efficiency occurs when the<u><em> marginal cost equals the marginal benefit to society</em></u>
Allocative efficiency is a state of the economy in which production stand for individual preferences, every commodity or work is produced up to the state where the last part renders a marginal benefit to individual equal to the marginal cost of producing.
<u><em>Therefore the correct option is (c)</em></u>
The answer is A "Colonial merchants once nailed advertisements on posts in front of their stores." please marl me as brainliest
