Scooter’s Scooters is a large American manufacturer of electric scooters operating out of Fort Collins. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer’s monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. Number of Factories Average Total Cost (Dollars per scooter) Q = 50 Q = 100 Q = 150 Q = 200 Q = 250 Q = 300 1 180 100 80 120
Scooter’s Scooters is a large American manufacturer of electric scooters operating out of Fort Collins. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer’s monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories.
|
Number of Factories |
Average Total Cost |
|||||
|
(Dollars per scooter) |
||||||
|
Q = 50 |
Q = 100 |
Q = 150 |
Q = 200 |
Q = 250 |
Q = 300 |
|
|
1 |
180 |
100 |
80 |
120 |
200 |
360 |
|
2 |
270 |
150 |
80 |
80 |
150 |
270 |
|
3 |
360 |
200 |
120 |
80 |
100 |
180 |
Suppose Scooter’s Scooters is currently producing 50 scooters per month in its only factory. Its short-run average total cost is $____per scooter.
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