Ask Question
BusinessBusiness
15 July, 20:14

Buffalo Aircraft doubles the amount of all the inputs it uses-the factory doubles in size and twice as many workers are hired. After this expansion, the number of aircraft produced triples. This means that Buffalo Aircraft is experiencing:

a. increasing marginal cost.

b. economies of scale.

c. increasing average total cost.

d. decreasing the average variable cost.

+4
Answers (1)
  1. 15 July, 20:31
    0
    Answer: b) economies of scale

    Explanation:

    Economies of Scale can be defined as the cost advantage enjoyed by a firm or industry when it increases its level of output. The greater the quantity of output produced, the lower the cost of production.

    There are two types of economies of scale:

    1) Internal Economies of Scale

    This type of economies of scale are focused on a firm. Buffalo Aircraft is experiencing this type of economies of scale. An increase in the level of inputs in a firm increases the output and cost of production.

    2. External Economies of Scale: This is concerned about the economies of scale enjoyed by a partucular sector or industry in an economy.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Buffalo Aircraft doubles the amount of all the inputs it uses-the factory doubles in size and twice as many workers are hired. After this ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
At the beginning of the year (January 1), a company has $10,000 of common stock outstanding and retained earnings of $7,200. During the year, the company reports net income of $7,500 and pays dividends of $2,200.
Answers (1)
During the year, Kiner Company made an entry to write off a $16,000 uncollectible account. Before this entry was made, the balance in accounts receivable was $200,000 and the balance in the allowance account was $18,000.
Answers (1)
A company will make $74,000 in annual revenue each year for the next seven years from a new investment. The interest rate of 7.25 percent per year is appropriate for investments of this risk. Calculate the present value.
Answers (1)
Externalities exist when the actions of one agent Question 9 options: A. benefit the agent committing the acts. B. hurt the agent committing the action. C. benefit or hurt another agent who is a part of the exchange relationship. D.
Answers (1)
Schedule of Cash Payments for a Service Company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $52,400 April 64,200 May 68,900
Answers (1)
New Questions in Business
Which type of training would be considered vocational training?
Answers (2)
Which of the following is not a step in creating operating department income statements? eliminate the uncontrollable costs for each department. allocate indirect expenses across departments. prepare the departmental income statements.
Answers (1)
Suppose the supply equation is: Upper Q equals 12 plus 0.30 p. What is the price elasticity of supply if the market price is $16 ? nothing (round your answer to three decimal places ).
Answers (1)
This type of credit occurs when you charge a purchase at the time you buy the good or service
Answers (1)
Before prorating the manufacturing overhead costs at the end of 2020, the Cost of Goods Sold and Finished Goods Inventory accounts had applied overhead costs of $59,300 and $38,000 in them, respectively.
Answers (1)
Home » Business » Buffalo Aircraft doubles the amount of all the inputs it uses-the factory doubles in size and twice as many workers are hired. After this expansion, the number of aircraft produced triples. This means that Buffalo Aircraft is experiencing: a.
Sign Up Forgot Password?