The figure to the right illustrates the long-run average cost curve for a company that makes motors Suppose the company produces & thousand meters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 thousand motors, then it experiences Average total cont 45.00 41.00 40.00 36.00 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000s)

The figure to the right illustrates the long-run average cost curve for a company that makes motors Suppose the company produces & thousand meters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 thousand motors, then it experiences Average total cont 45.00 41.00 40.00 36.00 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000s)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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