5.6.5. Round Things, Inc.'s production process exhibits economies of scale. Currently its long-run average total cost is $1/unit. If Round Things doubles its use of all inputs, its new long-run average total cost will be $1/unit less than $1/unit. greater than $1/unit but less than $2/unit. greater than $2/unit.

5.6.5. Round Things, Inc.'s production process exhibits economies of scale. Currently its long-run average total cost is $1/unit. If Round Things doubles its use of all inputs, its new long-run average total cost will be $1/unit less than $1/unit. greater than $1/unit but less than $2/unit. greater than $2/unit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

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5.6.5. Round Things, Inc.'s production process exhibits economies of scale. Currently its long-run average total cost is $1/unit. If Round
Things doubles its use of all inputs, its new long-run average total cost will be
$1/unit.
less than $1/unit.
greater than $1/unit but less than $2/unit.
greater than $2/unit.

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