Margaret owns a stuffed animal shop. at first, it is just she and her daughter allison hand-sewing stuffed bears, stuffed sharks, and stuffed giraffes in the spare bedroom. over time, margaret decides to rent a larger shop and hire more workers to out, increasing to a staff of 20 people. everything is still hand sewn. she notices, however, that her stuffed animal output increased much more than tenfold despite her work force increasing by that amount. however, any more than 20 workers slows down production. this is an example of o ncreasing marginal productivity o economies of scale o alternative production technologies o increased average cost.
Economies of scale.
Economy of scale means a proportionate saving in costs gained by an increased level of production.
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animation has many uses,from entertainment to selling products and job training,that it is impossible to imagine today's world without it
correct option is C. Economies of scale
we know here that Margaret expend his business by 20 more people
so we can say according to given this is Economies of scale because
Economies of scale is cost advantage that the business can be exploit by the expand scale of production in long run
and effect is reducing long run average cost of production over the range of output and lower cost is improvement of productive efficiency
it can feed in form of lower market prices
they give business competitive advantage in the market and lead to lower price but high profit
so we can say correct option is C. Economies of scale
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