ktcesThe 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 1102030405060ATC$1.00.90.85.88.931.05Size 2203040506070Long-Run1090ATC$.95.80.76.79.83.90Size 3405060708090AC$ATC$1.00.87.84.80.951.05

In the short run, some inputs are fixed and some are variable. Whereas in the long run, all the…

Answered: Long-Run Q 10 90 AC $

Business

Economics

Long-Run Q 10 90 AC $

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

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Question

k
t
ces
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
10
20
30
40
50
60
ATC
$1.00
.90
.85
.88
.93
1.05
Size 2
20
30
40
50
60
70
Long-Run
10
90
ATC
$.95
.80
.76
.79
.83
.90
Size 3
40
50
60
70
80
90
AC
$
ATC
$1.00
.87
.84
.80
.95
1.05

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