The following table shows long-run costs of two difference firms: 3 5 20 55 65 90 Quantity Firm 1 Firm 2 1 5 20 2 10 45 4 35 80 Given the table above, which of the following statements is true? 6 80 95 Firm 1 exhibits economies of scale and Firm 2 exhibits diseconomies of scale. O Firm 1 exhibits diseconomies of scale and Firm 2 exhibits diseconomies of scale. 7 110 99

The following table shows long-run costs of two difference firms: 3 5 20 55 65 90 Quantity Firm 1 Firm 2 1 5 20 2 10 45 4 35 80 Given the table above, which of the following statements is true? 6 80 95 Firm 1 exhibits economies of scale and Firm 2 exhibits diseconomies of scale. O Firm 1 exhibits diseconomies of scale and Firm 2 exhibits diseconomies of scale. 7 110 99

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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