Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 20P
Related questions
Question
![20
15
LRAC
10
10
15
20
25
30
Quantity (units per hour)
1. In the above figure, the long run average cost LRAC, between 0 and 10 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
2. In the above figure, the long run average cost LRAC, between 10 and 20 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
3. In the above figure , the long run average cost LRAC, between 20 and 30 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
В
I
Cost (dollars per unit)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffed1dd1e-0144-4fc3-9289-345a5976c8af%2F5e20369c-3c3c-41d5-94cd-e7ca746b5bf2%2F408tsp_processed.png&w=3840&q=75)
Transcribed Image Text:20
15
LRAC
10
10
15
20
25
30
Quantity (units per hour)
1. In the above figure, the long run average cost LRAC, between 0 and 10 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
2. In the above figure, the long run average cost LRAC, between 10 and 20 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
3. In the above figure , the long run average cost LRAC, between 20 and 30 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
В
I
Cost (dollars per unit)
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