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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
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.
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education