b. Using the table below indicate if the firm has (i) diseconomies of scale (ii) economies of scale or (iii) constant returns to scale over the entire range of output. Explain your answer Quantity 1 (Units of output) Firm A (TC) Firm B (TC) Firm C (TC) 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii) economies of scale or (iii) constant returns to scale over the entire range of output. Explain your answer Quantity 1 (Units of output) Firm A (TC) Firm B (TC) Firm C (TC) 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
Related questions
Question
Question a has already been answered can you please answer question b and c
Transcribed Image Text:Question 4
Quantity TC
200
1
2
a. Complete the table below
3
4
5
6
660
Quantity 1
(Units of
output)
Firm A
(TC)
Firm B
(TC)
Firm C
(TC)
60
11
21
TVC
2
100
240
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)
economies of scale or (iii) constant returns to scale over the entire range of
output. Explain your answer
70
24
34
3
80
39
AFC
49
24
90
56
ATC
66
5
100
75
MC
85
20
160
6
110
96
AVC
106
7
120
119
129
c. Evaluate the view that the main goal of firms will always be cost minimization.
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Follow-up Question
Please assist with question c a and b has already been answered
Transcribed Image Text:Question 4
Quantity TC
200
1
2
a. Complete the table below
3
4
5
6
660
Quantity 1
(Units of
output)
Firm A
(TC)
Firm B
(TC)
Firm C
(TC)
60
11
21
TVC
2
100
240
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)
economies of scale or (iii) constant returns to scale over the entire range of
output. Explain your answer
70
24
34
3
80
39
AFC
49
24
90
56
ATC
66
5
100
75
MC
85
20
160
6
110
96
AVC
106
7
120
119
129
c. Evaluate the view that the main goal of firms will always be cost minimization.
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