A company discovers that their total cost is $1700 at an output level of 9 units and $2000 at an output level of 10. a) For this firm, calculate the value of S at 9 units of output. b) At 9 units of output, are there any economies of scale? Justify your response.
A company discovers that their total cost is $1700 at an output level of 9 units and $2000 at an output level of 10. a) For this firm, calculate the value of S at 9 units of output. b) At 9 units of output, are there any economies of scale? Justify your response.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 2MC
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A company discovers that their total cost is $1700 at an output level of 9 units and $2000 at an output level of 10.
a) For this firm, calculate the value of S at 9 units of output.
b) At 9 units of output, are there any economies of scale?
Justify your response.
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