Question

The movement from point A to point B is due​ to: A. economies of scale. B. learning by doing. C. economies of scale or learning by doing. D. economies of scale and learning by doing. The movement from point A to point b is due​ to: A. economies of scale and learning by doing. B. economies of scale. C. learning by doing. D. economies of scale or learning by doing. The movement from point C to point c is due​ to: A. economies of scale and learning by doing. B. learning by doing. C. economies of scale. D. economies of scale or learning by doing.

Answer 1

[1] - The right answer is (D)

At the point when Average Cost diminishes because of increment in measure of amount delivered then there is an economies of scale. Note When economies of scale happens there is descending development along AC bend. As Point An and B are on same AC bend and there is descending development structure A to B along AC1 bend. Thus Movement along A to B is because of Economies of scale

[2] - The right answer is (D)

At whatever point there is learning by doing then AC will lesser for each unit of creation and thus there is descending movement of AC bend. Development from Point A to point b will happen when there is mix of both descending movement of AC from AC1 to AC2 and descending development along AC2 bend

[3] - The right answer is (B)

Development from guide C toward c implies there is just descending movement of AC from AC1 to AC3. Subsequently along C to c is because of learning by doing as it were.