Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6 7 Firm A 25 30 40 60 90 120 150 Firm B 70 75 80 85 90 95 100 Firm C 15 40 65 90 115 140 170 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.)
Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6 7 Firm A 25 30 40 60 90 120 150 Firm B 70 75 80 85 90 95 100 Firm C 15 40 65 90 115 140 170 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.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following table of long-run total costs for three different firms:
Quantity | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Firm A | 25 | 30 | 40 | 60 | 90 | 120 | 150 |
Firm B | 70 | 75 | 80 | 85 | 90 | 95 | 100 |
Firm C | 15 | 40 | 65 | 90 | 115 | 140 | 170 |
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.)
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