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Business, 07.11.2019 06:31 nacgrading3p6d8pf

The united kingdom started regulating the size of grocery stores in the early 1990s, and today, the average size of a typical uk grocery store is roughly half the size of a typical u. s. store andtwo-thirds the size of a typical french store (haskel and sadun, 2011).  

what implications would such a restriction on size have on astore's average costs. discuss in terms of economics of scale and scope.

a. grocery store size does not affect the long-run average cost of production if there are economies of scale.

b. the long-run average cost of production for u. k. grocery stores is lower if there are no economies of scale.

c. the long-run average cost of production for u. k. grocery stores is lower if there are diseconomics of scale.

d. the long-run average cost of production for u. k. grocery stores is higher if there are diseconomics of scale.

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