Economies of Scale Typically, a company that achieves economies of scale lowers the average cost per unit through increa

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Economies Of Scale Typically A Company That Achieves Economies Of Scale Lowers The Average Cost Per Unit Through Increa 1 (94.01 KiB) Viewed 30 times

Economies of Scale Typically, a company that achieves economies of scale lowers the average cost per unit through increased production (since fixed costs are shared over an increased number of goods.) Instructions A. Select a product you are interested in. B. Determine the price for 1 unit of the product. C. Then determine the Prices for multiple quantities of the product (as you see fit to price them.) For example, the Price for 10 units, the Price for 50 units, the Price for 100 units, 200 units, etc.) D. Open EXCEL or another spreadsheet software program. E. For your product, compute the Average Cost per Unit for each of the quantities you specified by creating three columns: 1. Number of Units (#) 2. Total Price for that # of Units 3. Average Cost per Unit* F. Create a Chart where the x-axis is "# of Units" and the y-axis is "Average Cost per Unit". G. Be sure to include the product's name on your chart. H. Answer the question: "What direction is the line sloping?" and explain what it means. * Be sure to use the formula: Average Cost per Unit = Total Price / Number of Units