esThe following are three short-run average total cost schedules for the only three possible plantsizes, 1, 2, and 3. Find the long-run average cost schedule and show the result in the second table.Size 1Q102030405060ATC$1.0090.85.88.931.05Size 2Q203040506070Long-RunQ1090ATC$.95.80.76.79.83.90Size 3Q405060708090AC$ATC$1.00.87.84.80.951.05

There are mainly two types of costs short run and long run. In the short run, some inputs are fixed…

Answered: Long-Run 10 90 AC $

Business

Economics

Long-Run 10 90 AC $

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

es
The following are three short-run average total cost schedules for the only three possible plant
sizes, 1, 2, and 3. Find the long-run average cost schedule and show the result in the second table.
Size 1
Q
10
20
30
40
50
60
ATC
$1.00
90
.85
.88
.93
1.05
Size 2
Q
20
30
40
50
60
70
Long-Run
Q
10
90
ATC
$.95
.80
.76
.79
.83
.90
Size 3
Q
40
50
60
70
80
90
AC
$
ATC
$1.00
.87
.84
.80
.95
1.05

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