(b) The table below shows the output (measured in bucket of paints), capital (number ofmachines) and labour (number of workers) used by All Weather Paints Company Ltd.Output 1013030100Labour71Capital 326iii.603980412515120618From the table above, show the range of outputs over which the firm experiencedi.ii.Increasing Returns to ScaleConstant Returns to ScaleDecreasing Returns to Scale21

To determine the type of returns to scale, calculate the ratio of output to the sum of labor and…

(b) The table below shows the output (measured in bucket of paints), capital (number of machines) and labour (number of workers) used by All Weather Paints Company Ltd. Output 10 130 30 80 100 120 Labour 1 2 6 4 Capital 3 6 18 60 3 9 ii. iii. 12 5 15 From the table above, show the range of outputs over which the firm experienced i. Increasing Returns to Scale Constant Returns to Scale Decreasing Returns to Scale 7 21

(b) The table below shows the output (measured in bucket of paints), capital (number of machines) and labour (number of workers) used by All Weather Paints Company Ltd. Output 10 130 30 80 100 120 Labour 1 2 6 4 Capital 3 6 18 60 3 9 ii. iii. 12 5 15 From the table above, show the range of outputs over which the firm experienced i. Increasing Returns to Scale Constant Returns to Scale Decreasing Returns to Scale 7 21

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Graphical representation of the short-run total cost curve showing total cost, fixed cost, variable cost: and The marginal cost and average total cost:
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12. Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to illustrate their relationship.?
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