question archive true or false and what would the graph look like "If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, this indicates expansion provides economies of scale"
true or false and what would the graph look like "If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, this indicates expansion provides economies of scale"
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true or false and what would the graph look like "If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, this indicates expansion provides economies of scale"
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If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, this indicates expansion provides economies of scale"
The statement is true
An increase in quantity will lead to a decrease in average total cost. As shown in the diagram in the uploaded file, the initial quantity was produced was Q while the cost is C2. In the instance there is an expansion of the airport, quantity increase to Q* as the average total cost falls to C1 and this implies that there will be economies of scale
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