HistoryBookmarksProfiles Tab Window HelpG zoomzmzmzmzmBb C ICIOVAIGIIGGcom/static/nb/ui/evo/index.html?deploymentid=5981412282275864594790208&elSBN 9780357133576&id=1983540141...CENGAGE MINDTAPHomework(Ch 13)AVERAGE TOTAL COST (Dollars per scooter)7206405604804003202401608000100200300400QUANTITY (Scooters)500600700SRATC,SRATC2---SRATC3-0LRATCIn the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconomies ofscale for each range of scooter production.RangeEconomies of Scale Constant Returns to ScaleDiseconomies of ScaleBetween 300 and 400 scooters per monthооOFewer than 300 scooters per monthMore than 400 scooters per monthOоооOrigins part of the CA NELWULKAccessibility: Investigate37849ments.B18tv SAamazonzoomWmusicCG Search or type URL☆ History Bookmarks Profiles Tab Window HelpzmzmEASzoomGBb C CIGIIGG.com/static/nb/ui/evo/index.html?deploymentId=5981412282275864594790208&elSBN=9780357133576&id=1983540141...NewCENGAGE MINDTAPHomework(Ch 13)Q Search thScooter's Scooters is a large American manufacturer of electric scooters operating out of Fort Collins. Currently, the company produces all of itsscooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or twoadditional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if itoperates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.)Average Total Cost(Dollars per scooter)Number of Factories Q = 100Q = 200Q = 300= 400Q = 500Q = 6001360200160240400720.25403001601603005403720400240160200360Suppose Scooter's Scooters is currently producing 100 scooters per month in its only factory. Its short-run average total cost is $per scooter.Suppose Scooter's Scooters is expecting to produce 100 scooters per month for several years. In this case, in the long run, it would choose to producescooters usingOn the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (trianglesymbol) to plot its SRATC curve if it operates one factory (SRATC₁); use the purple points (diamond symbol) to plot its SRATC curve if it operates twofactories (SRATC2); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC3). Finally, plot the long-run average total cost (LRATC) curve for Scooter's Scooters using the blue points (circle symbol).Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.Accessibility: Investigate18AnOrigin is part of tе CA Networktv lAmusicсSearch or type URLR568ments. 回200m< *

AVERAGE TOTAL COST (Dollars per scooter) 359 720 640 560 480 400 320 240 160 80 9 0 0 100 200 300 400 QUANTITY (Scooters) 500 600 700 80 SRATC₁ SRATC₂ -D- SRATC3 10 LRATC In the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconom. scale for each range of scooter production. Range Between 300 and 400 scooters per month Fewer than 300 scooters per month More than 400 scooters per month Economies of Scale Constant Returns to Scale Diseconomies of Scale 000

AVERAGE TOTAL COST (Dollars per scooter) 359 720 640 560 480 400 320 240 160 80 9 0 0 100 200 300 400 QUANTITY (Scooters) 500 600 700 80 SRATC₁ SRATC₂ -D- SRATC3 10 LRATC In the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconom. scale for each range of scooter production. Range Between 300 and 400 scooters per month Fewer than 300 scooters per month More than 400 scooters per month Economies of Scale Constant Returns to Scale Diseconomies of Scale 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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