2015LRAC101015202530Quantity (units per hour)1. In the above figure, the long run average cost LRAC, between 0 and 10 units per hour what does the firm exhibit (Economies of scale, Diseconomies ofscale or constant return to scale)?2. In the above figure, the long run average cost LRAC, between 10 and 20 units per hour what does the firm exhibit (Economies of scale, Diseconomies ofscale or constant return to scale)?3. In the above figure , the long run average cost LRAC, between 20 and 30 units per hour what does the firm exhibit (Economies of scale, Diseconomies ofscale or constant return to scale)?ВICost (dollars per unit)

Economies of scale occurs when LRAC decreases as quantity increases Diseconomies of scale occur when…

Answered: * 25 20 15 LRAC 10 5 10 15 20 25 30…

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Economics

* 25 20 15 LRAC 10 5 10 15 20 25 30 Quantity (units per hour) Cost (dollars per unit)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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Question

20
15
LRAC
10
10
15
20
25
30
Quantity (units per hour)
1. In the above figure, the long run average cost LRAC, between 0 and 10 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
2. In the above figure, the long run average cost LRAC, between 10 and 20 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
3. In the above figure , the long run average cost LRAC, between 20 and 30 units per hour what does the firm exhibit (Economies of scale, Diseconomies of
scale or constant return to scale)?
В
I
Cost (dollars per unit)

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