Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Assist please
Transcribed Image Text:Question 4
Quantity TC
200
1
2
a. Complete the table below
3
4
5
6
660
Quantity 1
(Units of
output)
Firm A
(TC)
Firm B
(TC)
Firm C
(TC)
60
11
21
TVC
2
100
240
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)
economies of scale or (iii) constant returns to scale over the entire range of
output. Explain your answer
70
24
34
3
80
39
AFC
49
24
90
56
ATC
66
5
100
75
MC
85
20
160
6
110
96
AVC
106
7
120
119
129
c. Evaluate the view that the main goal of firms will always be cost minimization.
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Follow-up Question
Please assist with b and c
Transcribed Image Text:Question 4
Quantity TC
200
1
2
a. Complete the table below
3
4
5
6
660
Quantity 1
(Units of
output)
Firm A
(TC)
Firm B
(TC)
Firm C
(TC)
60
11
21
TVC
2
100
240
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)
economies of scale or (iii) constant returns to scale over the entire range of
output. Explain your answer
70
24
34
3
80
39
AFC
49
24
90
56
ATC
66
5
100
75
MC
85
20
160
6
110
96
AVC
106
7
120
119
129
c. Evaluate the view that the main goal of firms will always be cost minimization.
Solution
by Bartleby ExpertFollow-up Question
Please assist with question b and c please. Please show working
Transcribed Image Text:Question 4
Quantity TC
200
1
2
a. Complete the table below
3
4
5
6
660
Quantity 1
(Units of
output)
Firm A
(TC)
Firm B
(TC)
Firm C
(TC)
60
11
21
TVC
2
100
240
b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)
economies of scale or (iii) constant returns to scale over the entire range of
output. Explain your answer
70
24
34
3
80
39
AFC
49
24
90
56
ATC
66
5
100
75
MC
85
20
160
6
110
96
AVC
106
7
120
119
129
c. Evaluate the view that the main goal of firms will always be cost minimization.
Solution
by Bartleby ExpertKnowledge Booster
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