If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV sets each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per TV will be lower. What is this an example of? Select the correct answer below: O specialization O division of labor O productivity Oeconomies of scale

If a factory produces 100 TV sets per year, each TV will be quite expensive to make. However, if a factory produces 20,000 TV sets each year, then it can set up an assembly line with huge machines and workers performing specialized tasks, and the average cost of production per TV will be lower. What is this an example of? Select the correct answer below: O specialization O division of labor O productivity Oeconomies of scale

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Jackie runs an apple farm. Jackie has one fixed factor of production. Suppose that Jackie's short run average total cost curve is text-book typical. Suppose that this cost curve's minimum value occurs when she produces 120 tons of apples per year. Which one of the following is true? O When Jackie produces 120 tons of apples per year, her short run marginal cost equals her short run average total cost. O When Jackie produces 200 tons of apples per year, her short run marginal cost is smaller than her short run average total cost. When Jackie produces 90 tons of apples per year, her short run marginal cost is greater than her short run average total cost. When Jackie produces 120 tons of apples per year, her short run variable cost equals her short run average total cost.
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