10. Elegant Settings manufactures stainless steel cutlery. Quantity (sets) 100 200 300 400 500 Long Run Average Cost $40 $35 $30 $30 $35 a. Elegant Settings experiences economies of scale at an output of and diseconomies of scale at an output level above_____. b. What is the minimum efficient scale of production? or less toodw stata ose ross 10 insoisq 21 yd auqui ai asesooni tadi milansbian of ampion instemos tosissa to esimonosozib olsoz to asimonoss c. Over what range of output does it experience constant returns to scale? remb Insons 21 seasoni alugiuo

Exploring Economics
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Chapter11: The Firm: Production And Costs
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10. Elegant Settings manufactures stainless steel cutlery.
Quantity
(sets)
100
200
300
C.
400
500
Long Run
Average Cost
$40
$35
$30
$30
$35
a. Elegant Settings experiences economies of scale at an output of
and diseconomies of scale at an output level above_
b. What is the minimum efficient scale of production?
1410/
or less
orizedwstera omoo2 rose 101.Insonsq 21 yd atuqni ati aszsotoni tedt rotila tobianc
of aujos instamoo 1o pise to esimonosozib olsaz to asimmons
roqus nils
sh
Over what range of output does it experience constant returns to scale?
019 21 029oni alugi
14
Jasong 21 und vd
insonog 21 nadi seol yd sessioni autu
Transcribed Image Text:10. Elegant Settings manufactures stainless steel cutlery. Quantity (sets) 100 200 300 C. 400 500 Long Run Average Cost $40 $35 $30 $30 $35 a. Elegant Settings experiences economies of scale at an output of and diseconomies of scale at an output level above_ b. What is the minimum efficient scale of production? 1410/ or less orizedwstera omoo2 rose 101.Insonsq 21 yd atuqni ati aszsotoni tedt rotila tobianc of aujos instamoo 1o pise to esimonosozib olsaz to asimmons roqus nils sh Over what range of output does it experience constant returns to scale? 019 21 029oni alugi 14 Jasong 21 und vd insonog 21 nadi seol yd sessioni autu
Expert Solution
Step 1

Economies of scale refers to the cost advantages experienced by a firm when it increases its scale of production. It is classified into 2 categories, internal and external economies of scale. On the contrary, diseconomies of scale refers to the cost disadvantages that a firm experiences when it raises its scale of operations. It is also classified as, internal and external diseconomies of scale. 

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