Which of the following scenarios accurately describes a situation in which economies of scale could be successfully employed? A
A global manufacturer discovers that the average cost of producing pencils at a rate of 4,500 per day is $.69 per pencil, whereas the cost of producing pencils at a rate 5,500 per day is $.79 per pencil.

B
An ocean-going fisherman estimates that he catches 40,000—an increase of 10,000—pounds of fish per week using the new, slightly-more-expensive nets he purchased last week.

C
In order to gain a competitive edge over her competitors, Jenna figures she can tap into unexplored markets with the introduction of a new, aggressive advertisement campaign.

D
A local basket weaver finds that although the cost of making a single basket remains fixed, the overall revenue generated increases with the total number of baskets sold.

E
Having already incurred the high cost of installing underground pipelines throughout the city, a tap water supplier enthusiastically provides service to an increasing number of customers.