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Given the following information, does this firm has economies of scale or diseconomies of scale. Explain...

Given the following information, does this firm has economies of scale or diseconomies of scale. Explain why with reference to the values of ATC.

Small production unit . Large production uni

Q . FC VC       Q . FC . VC .

5 50 . 50 50 . 500 . 500

10 . 50 . 70 100 500 . 800

20 . 50 . 200 200 . 500 . 2500

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