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Economies of Scale or not?

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A security system companyâ??s total production costs depend on the number of systems produced according to the following equation: Total Costs = $10,000,000 + $2000*quantity produced. Given these data, which of the following is a false statement?
a. There are economies of scale.
b. There are fixed costs associated with this business.
c. There are diseconomies of scale.
d. A firm that produces a larger output has a cost advantage over a smaller firm.

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The expert examines if economies of scales or not.

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b. is obviously correct.

a. and d. essentially say the same thing, economies of scale means that producing larger outputs ...

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