a. What is the economic capacity output for each of the four plants? Plant 1: Plant 2: Plant 3: Plant 4: b. In what plant and at what output is minimum efficient scale achieved? Output of in (Click to select) ✓ c. Which plant is the right size to produce an output of 210? (Click to select) d. Which plant is the right size to produce an output of 110?

a. What is the economic capacity output for each of the four plants? Plant 1: Plant 2: Plant 3: Plant 4: b. In what plant and at what output is minimum efficient scale achieved? Output of in (Click to select) ✓ c. Which plant is the right size to produce an output of 210? (Click to select) d. Which plant is the right size to produce an output of 110?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer and give 1 sentence explanation.
6. Which one of the following production functions represents an increasing returns to scale technology, where e is labour and k is capital? a) F(£,k) = e1/2 + k1/2. b) G(2,k) = {2/3k^/2. c) H(e,k) = min{{, 2k} d) I(e, k) = 3l + 2k.
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