Consider the following table of long-run total costs for three different firms: A B Quantity 1 2 3 Firm A 25 30 40 60 Firm B Firm C 70 75 80 85 15 40 65 90 Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.) Firm Economies of Scale Diseconomies of Scale с 4 5 6 7 90 120 150 90 95 100 115 140 170 000

Consider the following table of long-run total costs for three different firms: A B Quantity 1 2 3 Firm A 25 30 40 60 Firm B Firm C 70 75 80 85 15 40 65 90 Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.) Firm Economies of Scale Diseconomies of Scale с 4 5 6 7 90 120 150 90 95 100 115 140 170 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

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.

Question

Consider the following table of long-run total costs for three different firms:
A
B
Quantity 1
2
3
Firm A
25
30 40 60
Firm B
Firm C
70 75 80 85
15 40 65 90
Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region
and diseconomies of scale in another, make sure to select both columns.)
Firm Economies of Scale Diseconomies of Scale
с
4
5
6
7
90 120
150
90 95
100
115 140 170
000

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