d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns to scale over the entire range of output. Explain your answer Quantity 1 (Units of output) 2 4 7 Firm A 210 340 490 660 850 1060 1290 Firm B 180 350 510 660 800 930 1050 Firm C 120 250 390 540 700 870 1050 Firm D 150 300 450 600 750 900 1050 3.

d. Using the table below indicate which firm has (i) diseconomies of scale and (ii) constant returns to scale over the entire range of output. Explain your answer Quantity 1 (Units of output) 2 4 7 Firm A 210 340 490 660 850 1060 1290 Firm B 180 350 510 660 800 930 1050 Firm C 120 250 390 540 700 870 1050 Firm D 150 300 450 600 750 900 1050 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question a has already been answered can you please answer question b and c
Need help answer point B. Cloud Service Providers
a large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of diseconomy of scale such an enterprise mightface if it grows. (b) Might any economies of scale emerge, and, if so, how it might be
Use the following information to answer question 22-23 Number of Workers Hired A 5 6 7 B a) fourth b) sixth seventh d) eighth Question 22 Diminishing marginal returns set in when the process C) seventh d)eigth Number of Meats Sold Question 23 Average product will fall above marginal product when the a) fourth b) sixth 3) zero 60 140 230 total costs total variable costs 300 320 d) total fixed costs Question 24 The maximum loss a fimm should experience in the short nun is equal worker is added to the production worker is hired
Please give 2 examples of economies of scale, diseconomies of scale, and constant returns of scale. Provide explanations...
Using diagram, explain returns to scale and their influence on a firm's long-run average cost (LRAC). CS Scanned with CamScanner
c. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 74°F Clear 2 3 440 620 800 Q = 200 280 380 480 Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 320 240 240 Q = 500 480 380 280 Q = 600 800 620 440 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $440 per bike. Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using one factory On the following graph, plot the three SRATC curves for Ike's Bikes from the…
Section 11.5 The Short-Run and Long-Run Average Total Cost Curves exhibit 1 SRATC for small plant SRATC for medium plant SRATC tor large plant LRATC B $500 $400 Economies of Scale Constant Returns to Saie 1,000 1,200 Quantity of Computers (per day) Notice that the long-run average total cost (LRATC) curve is much flatter than the short-run average total cost (SRATC) curve. This is because firms can be more flexible in the long run-they can choose which short-run cost curve they want to operate along, by choosing their plant scale. But they cannot do this in the short run, during which they are stuck with their existing short-run cost curve. That is, in the short run, the firm operates with the short-run curve it has based on past decisions. However, in the lang run, the firm is able to choose the short-run curve it wants to use. In Exhibit 1 above, explain why the curve between A and B looks different than the curve from A to C. Provide an example of how a firm could opt to follow the…
ips Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over this range of output, the marginal cost curve is Grade It Now the average Save & Continue
solution plz
Read the question and given information carefully. Show all necessary steps and reasoning that lead to the answers. You nead to draw graphs. a-Define diseconomies of scale and draw the long run average cost curve of a company that demonstrates diseconomies of scale b-List 2 reasons of diseconomies of scale and (in no more than 50 words for each reason) explain how each reason can contribute to diseconomies of scale