Respuesta :
Answer:
Option (d) is correct.
Explanation:
Economies of scale occurs when the average total cost decreases as the output increases.
Dis-economies of scale occurs when the average total cost increases as the output increases.
In the long-run,
When output is 2,400 candy bars, the total cost is $1,200
Average total cost = Total cost ÷ Output
= $1,200 ÷ 2,400
= $0.5
When output is 2,900 candy bars, the total cost is $1,400
Average total cost = Total cost ÷ Output
= $1,400 ÷ 2,900
= $0.48
In the given case, average total cost is falling as output rises.
So, the candy bar company exhibits economies of scale because average total cost is falling as output rises.
The candy bar company has been termed to exhibit the economies of sales as there has been a drop in the cost with rising in the sales. Thus, option D is correct.
In microeconomics, economies can be given as the decrease in sales, with the increase in the per-unit production cost. While diseconomies can be given as the increase in sales, with the decrease in the per-unit production cost.
The per-unit production cost can be given as:
Production cost = [tex]\rm \dfrac{Total\;cost}{Total\;sales}[/tex]
The production cost with total costs of $1,200 when output is 2,400 candy bars:
Production cost = [tex]\rm \dfrac{1200}{2400}[/tex]
Production cost = 0.5
The production cost with total costs of $1,400 when output is 2,900 candy bars:
Production cost = [tex]\rm \dfrac{1400}{2900}[/tex]
Production cost = 0.48
With the increase in the sales from 2400 candy to 2900 candy, the production cost has been decreased from 0.5 to 0.48. Thus, the condition has been termed as economies of sales as there has been a drop in the cost with rising in the sales. Thus, option D is correct.
For more information about the economies, refer to the link:
https://brainly.com/question/951950
