WellMade Manufacturing is a large conglomerate that operates…

WellMade Manufacturing is a large conglomerate that operates only in its home country. The company competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel industries. Which of the following diversification strategies does this best illustrate?

When a firm operates at an output level of 9,000 units, the…

When a firm operates at an output level of 9,000 units, the per-unit cost is $5. When the production is between 10,000–12,000 units, the per-unit cost is $4. At a production level of 13,000 units, the production cost is again $5 per unit. At 14,000 units and above, the production cost increases further. At what output level does the firm experience economies of scale?