1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spayn [35]
3 years ago
9

A firm decides to increase output by opening another plant. In doing so their average total cost changed from $50 with one plant

to an average total cost of $40 with two plants. This implies the firm is experiencing:_______
Business
1 answer:
Burka [1]3 years ago
5 0

Answer:

Economies of scale

Explanation:

The firm is experiencing economies of scale. Economies of scale result in a decreased average cost of production. Production increases and therefore the fixed cost is distributed more and average fixed cost becomes lesser and lesser as output increases. This leads to a decline in average total cost( As average total cost is the sum of average variable cost and average fixed cost, therefore a decline in average fixed cost leads to a decline in average total cost). This can be seen by an assymptotic average fixed cost for the firm which experiences economies of scale.

You might be interested in
Suppose a construction company enters into a contract to build a warehouse for the hypothetical Vincent Corporation with a contr
Romashka [77]

Answer:

$300,000

Explanation:

A contract is formed between different parties when there is an offer and acceptance of terms in performance of a job.

In construction contracts where a construction company enters a contract to build a warehouse for Vincent Corporation. The amount they will lost profits depends on which party is breaching the contract and at which project stage it happens.

In this case the contract was breached by the owner before project began. Damages/lost profits are project price less project cost.

Lost profit= 700,000 - 400,000= $300,000

7 0
3 years ago
What is one thing the government does as it enforces consumer protection regulations
Papessa [141]
<span>tests products such as drugs and automobiles for safety</span>
4 0
3 years ago
Read 2 more answers
Introverts recharge their energy in large groups.
viktelen [127]
The answer is false. introverts recharge their energy by themselves
3 0
3 years ago
Which statement is prepared for only one date?
lilavasa [31]

Answer:

income statemant.......

4 0
3 years ago
What is one specific requirement of a negotiable instrument?
Advocard [28]

Answer:

B

Explanation:

4 0
2 years ago
Other questions:
  • The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 - 4Q. The cost structures for the leader and the
    10·1 answer
  • A measure of output for any given project, task, or activity is called:
    6·2 answers
  • A snack food bag is white with plain black letters spelling, "corn chips." this is most likely an example of a ________ brand.
    14·1 answer
  • "Google employs the practice of team building and rewards ideas that are outside the box. They are likely to have ________ compa
    8·1 answer
  • What is the primary difference between a static budget and a flexible budget? Select one: a. The static budget contains only fix
    12·2 answers
  • IN POKER IS IT - 9 - 10 - J - Q - K ??? Or is it 9,10,j,K,Q ??? Or does it matter
    9·2 answers
  • Multiple choice-- economics
    8·1 answer
  • How can we develop desicion making skill on ourselves​
    9·1 answer
  • Which answer choice is not one of the top 10 abusive lending practices?
    13·2 answers
  • True or false: an external transaction is a transaction the firm conducts with a separate economic entity.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!