A business whose only inputs are labour and capital expands its employment level in the long run from 12 to 18 workers and its from 4 to 6 machines. Write out dollars and cents, e.g. $1.00 or $0.10 for any monetary amounts entered as a solution below. Assuming that the daily wage of $100 and the daily upkeep (including wear and tear) per machine of $20 remain constant in the run, identify the relevant returns to scale and the change in long-run average cost if daily output were to expand in each of the following possible ways. a. If daily output expands from 60 to 120 units then in this output range the business is experiencing (Click to select) v returns to while long-run average cost is (Click to select) v . At 60 units long-run average cost is $ and at 120 units it is $ b. If daily output expands from 60 to 90 units then in this output range the business is experiencing (Click to select) returns to S

A business whose only inputs are labour and capital expands its employment level in the long run from 12 to 18 workers and its from 4 to 6 machines. Write out dollars and cents, e.g. $1.00 or $0.10 for any monetary amounts entered as a solution below. Assuming that the daily wage of $100 and the daily upkeep (including wear and tear) per machine of $20 remain constant in the run, identify the relevant returns to scale and the change in long-run average cost if daily output were to expand in each of the following possible ways. a. If daily output expands from 60 to 120 units then in this output range the business is experiencing (Click to select) v returns to while long-run average cost is (Click to select) v . At 60 units long-run average cost is $ and at 120 units it is $ b. If daily output expands from 60 to 90 units then in this output range the business is experiencing (Click to select) returns to S

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section: Chapter Questions

Problem 1CQQ

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