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)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter12: The Cost Of Production
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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

 

  1. Graph the ATC curves for plant 1 and Plant 2.
  2. On jackie’s LRAC curve  what is the average cost of producing 40, 75 and 85 rides a week?
  3. What is jackie’s minimum efficient scale?

 

 

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