Give me correct and incorrect answer explanation otherwise i give downvote Note:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. Firms experience economies of scale for several reasons. What is one such reason?A firm might experience economies of scale becauseA. large firms may be able to purchase inputs at lower costs than smaller competitors.B. a firm's technology may make it impossible to increase production without a larger proportional increase input usage.C. managers experience diminishing returns, decreasing their marginal productivity as output expands.D. managers begin to have difficulty coordinating the operation of the firm.E. as a firm expands, it may have to borrow money at a higher interest rate.

Economies of scale are the basis for why with the increasing production scale, the average cost of…

Answered: Firms experience economies of scale for…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 1DQ

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Give me correct and incorrect answer explanation otherwise i give downvote

Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.

Answer completely and accurate answer.

Rest assured, you will receive an upvote if the answer is accurate.

Firms experience economies of scale for several reasons. What is one such reason?
A firm might experience economies of scale because
A. large firms may be able to purchase inputs at lower costs than smaller competitors.
B. a firm's technology may make it impossible to increase production without a larger proportional increase input usage.
C. managers experience diminishing returns, decreasing their marginal productivity as output expands.
D. managers begin to have difficulty coordinating the operation of the firm.
E. as a firm expands, it may have to borrow money at a higher interest rate.

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