Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 9.A, Problem 4P
To determine
Internal and external diseconomies of scale.
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Can you write the answer for part b by hand please
Consider the following chart. How much is
the marginal cost when total output increases
from 390 pounds to 450 pounds?
Total Output
Total Cost
Marginal Cost
(Pounds)
(TC = FC + VC)
0
150
150
300
240
450
320
600
390
750
450
900
420
1050
$1.50
$2.25
$2.00
$2.50
Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes
is LTC = 20,000g- 200g +q' where Q is measured as thousands of feet of
piping. The long-run marginal cost of Peter's pipes is given as
LMC = 20,000– 400q+3q²
Over what range of output does Peter's Pipers experience economies of
scale, and over what range of output does Peter's Pipers experience
diseconomies of scale?
Chapter 9 Solutions
Principles of Economics (12th Edition)
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