The table below shows average cost data for three different-sized plants-1, 2, and 3-which are the only three sizes possible. Output Plant 1 Plant 2 Plant 3 100 $15 $16 $21 200 14 13 18 300 13 14 400 500 14 12 11 15 16 12 a. In what plant size is MES achieved? Plant 2 b. What is the economic capacity for plant 1? Economic capacity:
The table below shows average cost data for three different-sized plants-1, 2, and 3-which are the only three sizes possible. Output Plant 1 Plant 2 Plant 3 100 $15 $16 $21 200 14 13 18 300 13 14 400 500 14 12 11 15 16 12 a. In what plant size is MES achieved? Plant 2 b. What is the economic capacity for plant 1? Economic capacity:
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...
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