The Languedoc-Roussillon region, southern France, is the home to three vineyards. Château Beauregard Mirouze produces 2,500 bottles of wine per month at a total cost of €40,000. Châteaude Bruthel produces 1,500 bottles of wine per month at a total cost of €27,000. Châteaude l’Esparrou produces 4,000 bottles of wine per month at a total cost of €80,000. These data suggest that there are significant economies of scale in wine production. Do you agree or disagree with this statement? Explain your answer.
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