Consider the following table of long-run total cost for two different companies: 1 2 3 4 5 $90 $100 $110 $120 $130 $70 $150 $240 $340 $450 Quantity Company X Company Y 6 $140 $560 7 $150 $690 Does each of these companies experience economies of scale or diseconomies of scale and why? Explain and show all your calculations.

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Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.