Please show solution for Part A The table below contains average cost data for four different-sized plants-1, 2, 3. and 4-which are the only four sizes possible.Plant 1Plant 2Plant 3Plant 4Output70$95$115$140$160120851001201401709580951102201101007510027014012010070320170140125110370205165155140a. What is the economic capacity output for each of the four plants?Plant 1:Plant 2:Plant 3:Plant 4:b. In what plant and at what output is minimum long-run average cost achieved?Output of 270in 4c. Which plant is the right size to produce an output of 170?Plant 2d. Which plant is the right size to produce an output of 70?Plant 1

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The table below contains average cost data for four different-sized plants-1, 2, 3, and 4-which are the only four sizes possible. Plant 4 $160 140 Output Plant 1 Plant 2 Plant 3 $95 $140 120 95 70 $115 120 170 85 100 95 80 110 220 110 100 75 100 70 270 140 170 120 100 320 370 140 125 110 205 165 155 140 a. What is the economic capacity output for each of the four plants? Plant 1: Plant 2: Plant 3: Plant 4:

The table below contains average cost data for four different-sized plants-1, 2, 3, and 4-which are the only four sizes possible. Plant 4 $160 140 Output Plant 1 Plant 2 Plant 3 $95 $140 120 95 70 $115 120 170 85 100 95 80 110 220 110 100 75 100 70 270 140 170 120 100 320 370 140 125 110 205 165 155 140 a. What is the economic capacity output for each of the four plants? Plant 1: Plant 2: Plant 3: Plant 4:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please show solution for Part A

The table below contains average cost data for four different-sized plants-1, 2, 3. and 4-which are the only four sizes possible.
Plant 1
Plant 2
Plant 3
Plant 4
Output
70
$95
$115
$140
$160
120
85
100
120
140
170
95
80
95
110
220
110
100
75
100
270
140
120
100
70
320
170
140
125
110
370
205
165
155
140
a. What is the economic capacity output for each of the four plants?
Plant 1:
Plant 2:
Plant 3:
Plant 4:
b. In what plant and at what output is minimum long-run average cost achieved?
Output of 270
in 4
c. Which plant is the right size to produce an output of 170?
Plant 2
d. Which plant is the right size to produce an output of 70?
Plant 1

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