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$70 $60 $50 $40 Long-Run Average Total Cost $30 Long Run Average Total Cost Necklace Factory $20 $10 $0$0 0 100 200 300 400 500 600 700 800 900 Quantity of Necklaces The above graph shows the long run average total cost for a fa

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Ans. 0 necklaces and 300 necklaces

Economies of scale occurs for the factory when the factory's long run average total cost decreases. As the factory produces more and more unit of necklaces, it is able to do so at lower and lower average total cost and this is referred to as economies of scale. This factory enjoys economies of scale between 0 and 300 units of necklaces.

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