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Question
Josephina owns a boxing gym. She recently expanded the size of her gym by adding another boxing ring and moving into a larger building so that she can serve more clients. How would Josephina know if she is experiencing economies of scale from increasing the size of her boxing gym?
a. Her average cost per client increases.
b. Her total cost increases.
c. Her average cost per client remains the same.
d. Her average cost per client decreases.
e. Her total cost remains unchanged.
Answer
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Related questions
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