Tomcat is a cable television provider. In the long run, Tomcat can provide cable television for 20,000 homes each month at a total cost of $600,00 cable television for 30,000 homes at a total cost of $900,000, or cable television for 40,000 homes at a total cost of $1,000,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Note: Plot your points in the order in which you would like them connected. Line seaments will connect the points automatically. AVERAGE COST (Dollars per home per month) 50 9 30 20 O 0 0 10 20 30 HOMES SERVED (Thousands) 40 50 Average Cost
Tomcat is a cable television provider. In the long run, Tomcat can provide cable television for 20,000 homes each month at a total cost of $600,00 cable television for 30,000 homes at a total cost of $900,000, or cable television for 40,000 homes at a total cost of $1,000,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Note: Plot your points in the order in which you would like them connected. Line seaments will connect the points automatically. AVERAGE COST (Dollars per home per month) 50 9 30 20 O 0 0 10 20 30 HOMES SERVED (Thousands) 40 50 Average Cost
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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![Suppose that Tomcat provides cable for all 40,000 homes that purchase cable television in the metropolitan area.
This situation can best be characterized as:
A natural monopoly
Decreasing returns to scale](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbec9edff-ab88-4cb0-8227-8395cbaebd70%2F73788d00-8436-4c05-bf85-5e15fe168732%2Fnxriit3_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that Tomcat provides cable for all 40,000 homes that purchase cable television in the metropolitan area.
This situation can best be characterized as:
A natural monopoly
Decreasing returns to scale
![Tomcat is a cable television provider. In the long run, Tomcat can provide cable television for 20,000 homes each month at a total cost of $600,000,
cable television for 30,000 homes at a total cost of $900,000, or cable television for 40,000 homes at a total cost of $1,000,000.
Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000
homes.
Note: Plot your points in the order in which you would like them connected. Line seaments will connect the points automatically.
AVERAGE COST (Dollars per home per month)
50
40
30
20
10
0
0
10
30
HOMES SERVED (Thousands)
20
40
50
Average Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbec9edff-ab88-4cb0-8227-8395cbaebd70%2F73788d00-8436-4c05-bf85-5e15fe168732%2Fwlgk86h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tomcat is a cable television provider. In the long run, Tomcat can provide cable television for 20,000 homes each month at a total cost of $600,000,
cable television for 30,000 homes at a total cost of $900,000, or cable television for 40,000 homes at a total cost of $1,000,000.
Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000
homes.
Note: Plot your points in the order in which you would like them connected. Line seaments will connect the points automatically.
AVERAGE COST (Dollars per home per month)
50
40
30
20
10
0
0
10
30
HOMES SERVED (Thousands)
20
40
50
Average Cost
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