Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 9, Problem 7DQ
To determine
Impact of economies of scale and diseconomies of scale on an average total cost .
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run.
Plant 1
Plant 2
Plant 3
Output
ATC
Output
ATC
Output
ATC
10
$ 10
10
$ 15
10
$ 20
20
9
20
10
20
15
30
8
30
7
30
10
40
9
40
10
40
8
50
10
50
14
50
9
What is the long-run average cost of producing 20 units of output?
Multiple Choice
$15
О
$10
○ $34
О
$9
7. Suppose a firm has only three possible plant-size options, represented
by the ATC curves shown in the figure. What plant size will the firm
choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of
output? Draw the firm's long-run average-cost curve on the diagram
and describe this curve. LO9.4
ATC
0
M
150
ATC2
ATC₁
ATC3
80
240
Situation 21-1
Diane's Donuts will begin selling donuts next week. Diane figures that
the average variable cost to make each donut will be constant at $0.30.
She has already paid $20,000 for the donut-making machinery and one
year's rent.
Refer to Situation 21-1. What will Diane's total variable costs be if she sells 36,500 donuts in one year?
$10,950
O $18,450
$22,080
$12,500
Chapter 9 Solutions
Microeconomics
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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- Q17,18arrow_forward7arrow_forwardLO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost and average cost. Suppose that Patrick's Handmade Puppets has a production cost that is given by C(x) = 2,000 + 130x – 0.6x2 + 0.002x3 dollars (0arrow_forward(Figure: Representative Firm) The figure shows the cost curves for a representative firm. At an output level of five units, the average fixed, average variable, and average total costs, respectively, would be and O $40; $80; $120 O $120; $66.67; $186.67 O $100; $120; $220 O $66.67; $53.33; $120arrow_forward14arrow_forwardBetsy's Bangles produces and sells woven bracelets. The table shows information about the number of workers employed, daily bracelet production, and the marginal product of labor (MPL). Use this to answer the questions. You must calculate the bracelet values that are absent to answer the question. How many bracelets can be produced by 5 workers? bracelets from 5 workers: Workers 0 1 2 3 4 5 Bracelets 0 1 * 39 * * MPL www 1 26 12 8 4 braceletsarrow_forwardRefer to Figure 13-7. When does the firm experience diseconomies of scale? a. if it changes its level of output from Q1 to Q2 b. if it changes its level of output from Q2 to Q3 c. if it changes its level of output from Q3 to Q4 d. if it changes its level of output from Q4 to Q5arrow_forwardon 16 of 20 In the accompanying graph, place • point A along the portion of the LRATC curve where a firm experiences economies of scale • point B along the portion of the LRATC curve where a firm experiences constant returns to scale • point C along the portion of the LRATC curve where a firm experiences diseconomies of scale LRATC 1 2 3 4 7 9. 10 Output Cost LOarrow_forward#14arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
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