5. Economies of scale Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 Firm A Firm B Firm C 10 21 32 43 in 5 6 7 54 66 80 10 15 18 23 35 10 19 28 37 46 50 8 8 55 65 60

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5. Economies of scale
Consider the following table of long-run total costs for three different firms:
B
Quantity
Firm A
Firm B
Firm C
C
1 2 3
5
6
10 21 32 43 54 66 80
35 50
65
46 55
10 15 18
10 19 28
Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region
and diseconomies of scale in another, make sure to select both columns.)
Firm Economies of Scale Diseconomies of Scale
A
23
37
Transcribed Image Text:5. Economies of scale Consider the following table of long-run total costs for three different firms: B Quantity Firm A Firm B Firm C C 1 2 3 5 6 10 21 32 43 54 66 80 35 50 65 46 55 10 15 18 10 19 28 Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.) Firm Economies of Scale Diseconomies of Scale A 23 37
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