1. At which output level does the firm begin to experience diseconomies of scale? a. 10000 d. 35000 b. 22000 e. 43000 c. 28000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Costs per
Unit
ATC1
ATC2
ATC3
LRAC
$32000
$29000
$27000
10000
22000
28000
35000
43000
Quantity (Output)
1. At which output level does the firm begin to experience diseconomies of scale?
а. 10000
d. 35000
b. 22000
e. 43000
c. 28000
2. The firm added capital, increased its output and shifted from ATC1 to ATC2. By how much
did it decrease its cost per unit?
Transcribed Image Text:Costs per Unit ATC1 ATC2 ATC3 LRAC $32000 $29000 $27000 10000 22000 28000 35000 43000 Quantity (Output) 1. At which output level does the firm begin to experience diseconomies of scale? а. 10000 d. 35000 b. 22000 e. 43000 c. 28000 2. The firm added capital, increased its output and shifted from ATC1 to ATC2. By how much did it decrease its cost per unit?
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