contestada

If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it produces 10 jets per month, its long-run total cost is $9.5 million per month. Does Boeing exhibit economies or diseconomies of scale? Provide reasons.

Respuesta :

Answer:

economies of scale

Step-by-step explanation:

The computation is shown below

In the first case

Long run average cost is

= $9 million ÷ 9 jets

= $1 million

In the second case

Long run average cost is

= $9.5 million ÷ 10 jets

= $.95 million

As it can be seen that the long run average cost would be decreased when the number of jets is increased this represent the economies of scale

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE

Otras preguntas