A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,000 cell phones a day. Consequently, it built a larger plant and installed efficient machineries and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information?
a. the unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per dayb. a production plant with the capacity of producing 5,000 cell phones a day would be most efficientc. the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per dayd. a 2,000-capacity production plant would be less efficient because of increasing diseconomies of scalee. the fixed costs of the firm are more likely to increase with the increase in output
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