Due to high fixed costs, suppose a company can provide water service more cheaply than many...
Due to high fixed costs, suppose a company can provide water service more cheaply than many competing providers. This is an example of:
a. Absolute advantage.
b. The law of diminishing marginal returns.
c. Economies of scale.
d. The law of increasing marginal cost.
Homework Answers
Ans) the correct option is c. Economies of scale.
Economies of scale occurs when long run average cost declines as more output is produced
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Due to high fixed costs, suppose a company can provide water
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