C. The following table shows the short-run average total costs for five successively larger plantsizes (plant size a to E) for a manufacturing company. Using the information given, answerthe questions that follow.ATC for ATC forATC forATC forATC forOutputlevelPlant APlant BPlant CPlant DPlant E(RM)9.(RM)13(RM)16(RM)(RM)10172020711131417306.11121540757814508.46.12609.9.6.470101312880141616149901718191714i. Based on the above five possible plant sizes and their relevant short run ATCS, derive thelong run ATC by completing the table below.Output levelLong run ATC(RM)102030405060708090ii. At what output level that diseconomies of scale sets in the production? Explain one of thereasons for diseconomies of scale.

Economies of scale and diseconomies of scale are important concepts in economics. Economies of scale…

C. The following table shows the short-run average total costs for five successively larger plant sizes (plant size a to E) for a manufacturing company. Using the information given, answer the questions that follow. ATC for ATC for ATC for ATC for ATC for Output level 10 Plant B (RM) 13 Plant A Plant C Plant D Plant E (RM) 9. 7 6. (RM) 16 (RM) 17 (RM) 20 20 11 13 14 17 30 8. 11 12 15 40 7 5 7 8. 14 50 6 4 6. 12 60 9. 9. 13 6. 4 8 70 10 12 8. 6. 80 14 16 16 14 9 90 17 18 19 17 14 i. Based on the above five possible plant sizes and their relevant short run ATCS, derive the long run ATC by completing the table below. Output level Long run ATC (RM) 10 20 30 40 50 60 70 80 90 ii. At what output level that diseconomies of scale sets in the production? Explain one of the reasons for diseconomies of scale.

C. The following table shows the short-run average total costs for five successively larger plant sizes (plant size a to E) for a manufacturing company. Using the information given, answer the questions that follow. ATC for ATC for ATC for ATC for ATC for Output level 10 Plant B (RM) 13 Plant A Plant C Plant D Plant E (RM) 9. 7 6. (RM) 16 (RM) 17 (RM) 20 20 11 13 14 17 30 8. 11 12 15 40 7 5 7 8. 14 50 6 4 6. 12 60 9. 9. 13 6. 4 8 70 10 12 8. 6. 80 14 16 16 14 9 90 17 18 19 17 14 i. Based on the above five possible plant sizes and their relevant short run ATCS, derive the long run ATC by completing the table below. Output level Long run ATC (RM) 10 20 30 40 50 60 70 80 90 ii. At what output level that diseconomies of scale sets in the production? Explain one of the reasons for diseconomies of scale.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section7.5: Long-run Production Costs

Problem 1YTE

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