Costant return toscale: Situation inwhich output doubles when E CONo MIESOF SCACE chen firm can double its output at less than twice tre me 11. Returns to Scale and Economies of Scale 17 all impurs ane Can a production function simultaneously exhibi: constant returns to scale and economies of scale? Let Px = 10, Py = 1O. lovored. > Draw three isocost lines for total cost of $60, $90, and $120. Draw isoquants and a LR expansion path to answer. K FC しR 7. MC 3 TC 90 120 TC 60 9 10 12 3. Px=10 Py=10 イレ。 TC-90 TC= 60 190/10 = 12 TC/PX=b0/10:6 TC Px Q + Py-Q> 120/10-12

Costant return toscale: Situation inwhich output doubles when E CONo MIESOF SCACE chen firm can double its output at less than twice tre me 11. Returns to Scale and Economies of Scale 17 all impurs ane Can a production function simultaneously exhibi: constant returns to scale and economies of scale? Let Px = 10, Py = 1O. lovored. > Draw three isocost lines for total cost of $60, $90, and $120. Draw isoquants and a LR expansion path to answer. K FC しR 7. MC 3 TC 90 120 TC 60 9 10 12 3. Px=10 Py=10 イレ。 TC-90 TC= 60 190/10 = 12 TC/PX=b0/10:6 TC Px Q + Py-Q> 120/10-12

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Could I please have help answering the original question and checking my isoquant points

me 11. Returns to Scale and Economies of Scale
Costant return toscale:Situation in which output doubles when
ECONO MIES OF SCACE
when ferm candouble i1s output
at less ehan twIce tre
17
all inpurs ae
Can a production function simultaneously exhibi: constant returns to scale and
economies of scale? Let Px = 10, Py = 10.
dovored.
> Draw three isocost lines for total cost of $60, $90, and $120. Draw isoquants
and a LR expansion path to answer.
Ot10
anere
dis
K Y
しR
7.
MC
4
3
TC 90
す120
TC=60
3.
9 10
Px =10 Py=1I0
TC Px Q+ PL Q
TC-90
T(:126
TC= 60
120/10 - 1ス
TC Px Q + Py•Q TCIPX=60/10:6
TCIPY-60/0:6
90 /ic a
120/10 12

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