ATC ATC2 ATC3 ATCA 2 4 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. What is minimum efficient scale for the copy shop? 2 thousand copies per day The answer depends on the size of the copy shop in the short run. 6 thousand copies per day O 4 thousand copies per day Average cost (cents per copy) 6

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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10
ATC
ATC2 ATC3 ATCA
2
6
8
10
Quantity (thousands of copies per day)
A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each
option is shown in the graph. What is minimum efficient scale for the copy shop?
2 thousand copies per day
The answer depends on the size of the copy shop in the short run.
6 thousand copies per day
4 thousand copies per day
8.
6
2.
Average cost (cents per copy)
Transcribed Image Text:10 ATC ATC2 ATC3 ATCA 2 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. What is minimum efficient scale for the copy shop? 2 thousand copies per day The answer depends on the size of the copy shop in the short run. 6 thousand copies per day 4 thousand copies per day 8. 6 2. Average cost (cents per copy)
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