Question

Jump to. ECON 2106 Microeconomics-Spring19-KHEIRANDISHActivities and Due Dates >ch. 1 HW gnment Score: 1183/1500 Resources EFeedba stion 3 of 15> What key economic concept is the graph demonstrating?N0 Average cost 530 O comparative advantage O absolute advantage O opportunity costs O economies of scale 30 20 0 50 00 150 200 250 300 350 400 450 Quantity of production F8 F9 F10 F11F12 PrtSc Pause De F5 F6 F7 Sor lk SysRg Break

Answer 1

Ans:

Economies of scale

Economies of scale is the cost advantage that firms obtain from increased level of production.The cost per unit of output decreases as output increases.The key economic concept demonstrated in the graph is economies of scale.