Complete the following table of costs for a firm. It can overcome the problem of indivisibilities. It can obtain inputs at a lower price. The firm may be able to obtain finance at lower cost. It becomes economical to sell by-products.
Production can take place in integrated plants.
Risks can be spread with a larger number of products or plants. Match each of the following examples for a particular firm to one of these types of economy of scale. In each case, circle the correct answer. B. A reduction in output would raise average cost. The firm is producing beyond its minimum average cost level.