E) {0) 533.0 Hide

Summary. Long-Run Costs and Output Decisions GA Hide 2.6 2.7 Gras Mud Bug Cooperative harvests 25,000 pounds of crawfish per month at a total cost of $35,000. Lafourche Farms harvests 90,000 pounds of crawfish per month at a total cost of $140,000. These data suggest that there are significant economies of scale in crawfish production. Do you agree or disagree with this statement? Explain your answer. Indicate whether you agree or disagree with the following statements. Briefly explain your answers. a. Increasing returns to scale refers to a situation where an increase in a firm's scale of production leads to higher costs per unit produced. b. Constant returns to scale refers to a situation where an increase in a firm's scale of production has no effect on costs per unit produced. c. Decreasing returns to scale refers to a situation where an increase in a firm's scale of production leads to lower costs per unit produced. The concept of economies of scale refers to lower per-unit production costs at higher levels of output. The easiest way to understand this is to look at whether long-run