Which of these is an example of economies of scale?

A. An Internet access company charges customers different rates for using the Internet at different times of day.

B. A restaurant charges customers $1 a glass for water that was once provided for free.

C. A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.

D. A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.

Economics

Question

Biology

Rhianna Barr

13 May, 22:16

Which of these is an example of economies of scale?

A. An Internet access company charges customers different rates for using the Internet at different times of day.

B. A restaurant charges customers $1 a glass for water that was once provided for free.

C. A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land.

D. A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.

Economics

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Answers (1)

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Erica Norman · Answer 1

An example of economies of scale is given below;

An Internet access company charges customers different rates for using the Internet at different times of day.

Explanation:

This implies that charges varies according to the time of the day, for instances most people wont visit such company at night which tends to reduce their profit at such time of the day, hence; reduction of charges by slashing it by half or drastic decrease in order to enable higher patronage of customers at that time of the day. This is a good economy scale and it is sustainable