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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- ECON 4015 - Problem Solving 1. Based on a consulting economist's report, the Total Cost for a company named Advanced Electronics is as follows: TC 200 +5Q -0.04Q² + 0.001Q³ Find the level of output that results in minimum Average Variable Cost for the company. & how much is the minimum AVC at that rate of output? 2. If TC = 1000 + 200Q-9Q² +0.25Q³, what output rate minimizes Average Variable Cost & how much is the minimum AVC at that rate of output? 3. Given the Total Cost function as follows: TC = 100Q-3Q² + 0.1Q³ What rate of output will minimize Average Total Cost & how much is the minimum ATC at that rate of output? 4. Given the Total Cost function as follows: TC= 200-2Q +0.05Q² What rate of output will minimize Average Total Cost & how much is the minimum ATC at that rate of output? PjC September 24, 2022arrow_forwardHi! Can you help me with the question below? Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a cup of coffee is $3.00 and the current price of an amazing breakfast sandwich is $8.00. At those prices, NS sells 1000 cups of coffee and 200 breakfast sandwiches daily. NS faces a constant marginal cost for each cup of coffee of 50 cents and the constant marginal cost of breakfast sandwiches is $2. NS increases the price of coffee 5%, to $3.15. After the price increase, NS sells 900 cups of coffee, a decrease of 10% in cups of coffee. Demand for coffee at NS at this price interval is best described as:A) ElasticB) InelasticC) Unitary ElasticD) Perfectly Elasticarrow_forwardIn merging with Copa, WestJet sought to acquire an advantage from operating with economies of scale. Discuss the ways this merger may have caused WestJet to suffer from internal diseconomies of scale.arrow_forward
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