alleryStart learning →Once a firm has chosen its least costly production technology, it next considers the:
AOptimal scale of production
BLegal form of the company
CColour of its packaging
DLocation of its head office
Answer & Solution
Correct answer: A. Optimal scale of production
1. Technology choice and scale choice are separate decisions.
2. Once a firm has determined the least costly production technology, it can consider the optimal scale of production.
3. Scale means the quantity of output to produce.
4. That is the decision economies of scale bear on.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 7 'Production, Costs and Industry Structure', sections 7.1-7.4_
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