Question 6The table below describes the cost functions for a food manufacturer.Total Fixed Variable Totaloutput CostAvg.TotalAvg.FixedAvg.VariableMarginalCostCostCostCostCostCost10019021703340410085a. Fill in the blanks in the table.b. Identify the level of output at which this firm reaches its efficient scale and explainhow you reach that conclusion.

Total cost is the sum of fixed cost and variable cost. Fixed cost does not depend on output and…

Question 6 The table below describes the cost functions for a food manufacturer. Total Fixed Variable Total Cost Avg. Total Avg. Fixed Avg. Variable Marginal Cost output Cost Cost Cost Cost Cost 100 1 90 2 170 3 340 4 100 85 a. Fill in the blanks in the table. b. Identify the level of output at which this firm reaches its efficient scale and explain how you reach that conclusion.

Question 6 The table below describes the cost functions for a food manufacturer. Total Fixed Variable Total Cost Avg. Total Avg. Fixed Avg. Variable Marginal Cost output Cost Cost Cost Cost Cost 100 1 90 2 170 3 340 4 100 85 a. Fill in the blanks in the table. b. Identify the level of output at which this firm reaches its efficient scale and explain how you reach that conclusion.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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CENGAGE MINDTAP Q Search this cours Homework (Ch 13) 800 pols 720 640 SRATC, 560 480 SRATC2 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700 QUANTITY (Bikes) те... In the following table, indicate whether the long-run average cost curve exhibits economies of scale, constant returns to scale, or diseconomies of scale for each range of bike production. Range Economies of Scale Constant Returns to Scale Diseconomies of Scale Fewer than 300 bikes per month More than 400 bikes per month Between 300 and 400 bikes per month 4:51 F ENG N N search 3/15/2 AVERAGE TOTAL COST (Dollars per bike)