For the firm whose cost curves are shown at right, the minimum efficient scale is OA. about 10 units of production OB. the level of fixed cost corresponding to SRATC₂ OC. about 30 units of production OD. about 50 units of production OE between 30 and 70 units of production

For the firm whose cost curves are shown at right, the minimum efficient scale is OA. about 10 units of production OB. the level of fixed cost corresponding to SRATC₂ OC. about 30 units of production OD. about 50 units of production OE between 30 and 70 units of production

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

For the firm whose cost curves are shown at right, the
minimum efficient scale is
OA. about 10 units of production
OB. the level of fixed cost corresponding to SRATC₂
OC. about 30 units of production
OD. about 50 units of production
OE between 30 and 70 units of production.
GI
Cost per Unit
SRATC,
SRATC₂
10
20
SRATC
30 40 50 60
Output per Period
70
SRATC
80
LRAC
90 100

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