14. A firm’s long-run total costs are given in the table below. Output Long Run Total Cost Long Run Average Total Cost 0 18 1 24 2 28 3 30 4 34 5 40 6 48 7 63 8 80 Fill in the long-run average total cost column. Over what production range does this firm experience economies of scale? Over what production range does this firm experience constant returns to scale? Over what production range does this firm experience diseconomies of scale?
14. A firm’s long-run total costs are given in the table below. Output Long Run Total Cost Long Run Average Total Cost 0 18 1 24 2 28 3 30 4 34 5 40 6 48 7 63 8 80 Fill in the long-run average total cost column. Over what production range does this firm experience economies of scale? Over what production range does this firm experience constant returns to scale? Over what production range does this firm experience diseconomies of scale?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
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14. A firm’s long-run total costs are given in the table below.
Output |
Long Run Total Cost |
Long Run |
0 |
18 |
|
1 |
24 |
|
2 |
28 |
|
3 |
30 |
|
4 |
34 |
|
5 |
40 |
|
6 |
48 |
|
7 |
63 |
|
8 |
80 |
|
- Fill in the long-run average total cost column.
- Over what production range does this firm experience economies of scale?
- Over what production range does this firm experience constant returns to scale?
- Over what production range does this firm experience diseconomies of scale?
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