The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 a.This cost structure is an example of natural monopoly. b.For the first 300 units of output, this firm has diseconomies of scale. c.For output levels between 300 and 400, the firm has constant returns to scale. d.For output levels greater than 400, the firm has economies of scale. which is the answer?
The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 a.This cost structure is an example of natural monopoly. b.For the first 300 units of output, this firm has diseconomies of scale. c.For output levels between 300 and 400, the firm has constant returns to scale. d.For output levels greater than 400, the firm has economies of scale. which is the answer?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 40P: Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for 72...
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The following table provides information about long-run average cost curve of a firm:
Quantity | LRAC |
100 | 50 |
200 | 43 |
300 | 39 |
400 | 39 |
500 | 44 |
600 | 52 |
a.This cost structure is an example of natural monopoly .
b.For the first 300 units of output, this firm has diseconomies of scale.
c.For output levels between 300 and 400, the firm has constant returns to scale.
d.For output levels greater than 400, the firm has economies of scale.
which is the answer?
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