2.The table shows the production function of jackie’s Canoe Rides: Labor Plant 1 (output) Plant2(output) Plant3(output) Plant4(output) 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 Canoes 10 20 30 40 Jakie Pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hire Graph the ATC curves for plant 1 and Plant 2. On jackie’s LRAC curve what is the average cost of producing 40, 75 and 85 rides a week? What is jackie’s minimum efficient scale?
2.The table shows the production function of jackie’s Canoe Rides: Labor Plant 1 (output) Plant2(output) Plant3(output) Plant4(output) 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 Canoes 10 20 30 40 Jakie Pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hire Graph the ATC curves for plant 1 and Plant 2. On jackie’s LRAC curve what is the average cost of producing 40, 75 and 85 rides a week? What is jackie’s minimum efficient scale?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4QR
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Question
2.The table shows the production function of jackie’s Canoe Rides:
Labor |
Plant 1 (output) |
Plant2(output) |
Plant3(output) |
Plant4(output) |
10 |
20 |
40 |
55 |
65 |
20 |
40 |
60 |
75 |
85 |
30 |
65 |
75 |
90 |
100 |
40 |
75 |
85 |
100 |
110 |
Canoes |
10 |
20 |
30 |
40 |
Jakie Pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hire
- Graph the
ATC curves for plant 1 and Plant 2. - On jackie’s LRAC curve what is the average cost of producing 40, 75 and 85 rides a week?
- What is jackie’s minimum efficient scale?
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