Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Ask anything and receive prompt, well-informed answers from our community of knowledgeable experts.
you are managing a small plastics manufacturing firm and currently have the (long run) capacity to produce 500 tons of industrial plastic sheets every quarter. you are considering investing in capacity expansion but are not sure by how much. one concern you have is what production cost implications you might be facing. you hire an operations manager to research this. he transmits to you the following information (see the table below), however some information got lost in translation. capacity total cost 0.0 500.0 20,000.0 600.0 21,000.0 700.0 22,000.0 800.0 23,000.0 900.0 27,000.0 1,000.0 34,000.0 1,100.0 46,000.0 1,200.0 60,000.0 what does this data imply about capacity expansion? group of answer choices expanding beyond 500 will lead to diseconomies of scale. you can always experience economies of scale by expanding capacity to 1,200 anve beyond. you can realize economies of scale until you reach a capcity of 800. you don't want to increase capacity beyond 600 due to diminishing marginal product of varaible inputs..
Sagot :
We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Discover the answers you need at IDNLearn.com. Thank you for visiting, and we hope to see you again for more solutions.