Final answer:
The concept of economies of scale is demonstrated by reduced unit costs as production increases, seen in the examples of toaster oven production plants. To apply this concept to Bob's Bistro's production of hoagie sandwiches, more cost information would be required.
Step-by-step explanation:
The question pertains to the prediction of costs associated with the production of hoagie sandwiches at Bob's Bistro in contrast to the concept of economies of scale shown in the provided figures. The figures demonstrate that as the quantity of production increases, the average cost per unit decreases due to economies of scale, up to a certain point. For example, Production Plant S produces at a higher average cost of $30 per toaster oven compared to Plant M, which manages to reduce the cost to $20 per toaster oven thanks to a larger output. Plant L, and even Plant V, can further lower this cost to $10 per toaster oven, illustrating the benefit of increased production up to a threshold where economies of scale no longer provide additional cost savings. However, the question seems incomplete as the costs for direct materials for Bob's Bistro are missing. To analyze Bob's Bistro's predicted costs for producing party-sized hoagie sandwiches, information regarding direct materials, labor, overhead, and other associated costs would be essential to assess if economies of scale apply.