Question

If the total cost of producing 10 jets is $28 million and the total cost of producing 11 jets is $30 million, this firm is experiencing

Answer 1

Economies of scale in the range of 10 to 11 jets.

Step-by-step explanation:

This firm is experiencing economies of scale, this happens when as a firm or company increases production, the advantage in costs that it receives. There is an inverse relationship between the fixed cost per unit of each jet produced and the number of jet produced. The production of these jets have thereby become efficient from producing 10 at 28m and 11 at 30million.