The Languedoc-Roussillon region in southern France is home to three vineyards. Chteau Beauregard Mirouze produces 2,500 bottles

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The Languedoc-Roussillon region in southern France is home to three vineyards. Château Beauregard Mirouze produces 2,500 bottles of wine per month at a total cost of €40,000. Château de Bruthel produces 1,500 bottles of wine per month at a total cost of €27,000. Château de l’Esparrou produces 4,000 bottles of wine per month at a total cost of €80,000. These data suggest that there are significant economies of scale in wine production. Do you agree or disagree with this statement? Explain your answer.

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Principles Of Economics

ISBN: 9781292294698

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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