Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 9 - Businesses and the Costs of Production - Discussion Questions - Page 218: 7

Answer

No, the additive manufacturing doesn't rely on economies of scale.

Work Step by Step

Reason : This because new technology helps in the reduction of two costs— which are as follows : 1)The massive fixed costs necessary to set up large factories 2)The transportation costs needed to ship resources to factories and then to ship finished goods to consumers. This has been only possible due to the advent of a new technology called 3D printers which are not only inexpensive but also compact and easy to use.
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