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9 March, 12:01

Livi owns and operates Livi's Love From Scratch cupcake bakery. Livi has 10 locations throughout her state. When Livi is producing a high level of output, her production area becomes quite crowded with workers. Sometimes the workers have to wait to use a mixer or oven. Further, Livi sometimes cannot keep track of which locations are serving which cupcake flavors on specific days. Livi's production process is most likely experiencing

A constant returns to scale.

B declining total output.

C economies of scale.

D Diseconomies of scale.

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  1. 9 March, 14:10
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    C) declining total output.
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