On the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (triangle symbol) to plot its SRATC curve if it operates one factory (SRATC₁); use the purple points (diamond symbol) to plot its SRATC curve if it operates two factories (SRATC2); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC3). Finally, plot the long-run average total cost (LRATC) curve for Scooter's Scooters using the blue points (circle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AVERAGE TOTAL COST (Dollars per scooter) 400 360 320 280 240 200 160 120 80 40 0 0 50 100 150 200 QUANTITY (Scooters) 250 300 350 ব SRATC₁ SRATC2 ---- SRATC LRATC ? 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 scooter production. Range Between 150 and 200 scooters per month More than 200 scooters per month Fewer than 150 scooters per month Economies of Scale Constant Returns to Scale Diseconomies of Scale 000 Scooter's Scooters is a large American manufacturer of electric scooters operating out of Spokane. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Average Total Cost (Dollars per scooter) Number of Factories. Q = 50 Q = 100 Q = 150 Q: = 200 Q = 250 Q = 300 1 220 140 120 160 240 400 2 310 190 120 120 190 310 400 240 160 120 140 220 Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its short-run average total cost is $ per scooter. Suppose Scooter's Scooters is expecting to produce 300 scooters per month for several years. In this case, in the long run, it would choose to produce scooters using

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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On the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (triangle
symbol) to plot its SRATC curve if it operates one factory (SRATC₁); use the purple points (diamond symbol) to plot its SRATC curve if it operates
two factories (SRATC2); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC3). Finally, plot the
long-run average total cost (LRATC) curve for Scooter's Scooters using the blue points (circle symbol).
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
AVERAGE TOTAL COST (Dollars per scooter)
400
360
320
280
240
200
160
120
80
40
0
0
50
100
150
200
QUANTITY (Scooters)
250
300
350
ব
SRATC₁
SRATC2
----
SRATC
LRATC
?
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 scooter production.
Range
Between 150 and 200 scooters per month
More than 200 scooters per month
Fewer than 150 scooters per month
Economies of Scale Constant Returns to Scale Diseconomies of Scale
000
Transcribed Image Text:On the following graph, plot the three SRATC curves for Scooter's Scooters from the previous table. Specifically, use the green points (triangle symbol) to plot its SRATC curve if it operates one factory (SRATC₁); use the purple points (diamond symbol) to plot its SRATC curve if it operates two factories (SRATC2); and use the orange points (square symbol) to plot its SRATC curve if it operates three factories (SRATC3). Finally, plot the long-run average total cost (LRATC) curve for Scooter's Scooters using the blue points (circle symbol). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AVERAGE TOTAL COST (Dollars per scooter) 400 360 320 280 240 200 160 120 80 40 0 0 50 100 150 200 QUANTITY (Scooters) 250 300 350 ব SRATC₁ SRATC2 ---- SRATC LRATC ? 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 scooter production. Range Between 150 and 200 scooters per month More than 200 scooters per month Fewer than 150 scooters per month Economies of Scale Constant Returns to Scale Diseconomies of Scale 000
Scooter's Scooters is a large American manufacturer of electric scooters operating out of Spokane. Currently, the company produces all of its scooters
using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional
factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates
out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.)
Average Total Cost
(Dollars per scooter)
Number of Factories. Q = 50
Q = 100
Q = 150 Q:
= 200
Q
= 250
Q = 300
1
220
140
120
160
240
400
2
310
190
120
120
190
310
400
240
160
120
140
220
Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its short-run average total cost is $
per scooter.
Suppose Scooter's Scooters is expecting to produce 300 scooters per month for several years. In this case, in the long run, it would choose to produce
scooters using
Transcribed Image Text:Scooter's Scooters is a large American manufacturer of electric scooters operating out of Spokane. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Average Total Cost (Dollars per scooter) Number of Factories. Q = 50 Q = 100 Q = 150 Q: = 200 Q = 250 Q = 300 1 220 140 120 160 240 400 2 310 190 120 120 190 310 400 240 160 120 140 220 Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its short-run average total cost is $ per scooter. Suppose Scooter's Scooters is expecting to produce 300 scooters per month for several years. In this case, in the long run, it would choose to produce scooters using
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