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?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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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