Suppose Kim is running a digital start up company. She had total costs of $10,000 providing service to 2,000 customers last month. Her company charges $32 a month to provide its services. This month she is predicting 3,000 customers. Her company has economies of scale if Select one: A. average total costs are more than $5. B. total revenue is $96,000. C. marginal cost is less than $32. D. total costs are less than $15,000. E. the number of customers is increasing more each month. Clear my choice.
Suppose Kim is running a digital start up company. She had total costs of $10,000 providing service to 2,000 customers last month. Her company charges $32 a month to provide its services. This month she is predicting 3,000 customers. Her company has economies of scale if Select one: A. average total costs are more than $5. B. total revenue is $96,000. C. marginal cost is less than $32. D. total costs are less than $15,000. E. the number of customers is increasing more each month. Clear my choice.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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Suppose Kim is running a digital start up company. She had total costs of $10,000 providing service to 2,000 customers last month. Her company charges $32 a month to provide its services. This month she is predicting 3,000 customers. Her company has economies of scale if
Select one:
A.
B.
total revenue is $96,000.
C.
marginal cost is less than $32.
D.
total costs are less than $15,000.
E.
the number of customers is increasing more each month.
Clear my choice.
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