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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![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. It increases its factory sizes, increases output to 500 widgets and hn a TC M
$15.000.
Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increases 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 finns experience economies of scale
O Firm Cexperiences economies of scale.
O Firm B experiences economies of scale.
O None of the firms experience economies of scale.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d62f856-532f-4099-9e33-6dec7492dbad%2F75357fa4-16d2-485f-9b49-f1fdfac42ddf%2F94a4rz_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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. It increases its factory sizes, increases output to 500 widgets and hn a TC M
$15.000.
Firm C produces 600 widgets and has a TC of $21.000. It increases its factory size, increases 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 finns experience economies of scale
O Firm Cexperiences economies of scale.
O Firm B experiences economies of scale.
O None of the firms experience economies of scale.
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