Costs in the short run versus in the long run ke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's average total cost each month for various levels of production if uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 Q = 200 70 30 115 55 160 80 1 2 3 Average Total Cost (Dollars per bike) Q=300 Q = 400 Q = 500 Q = 600 20 40 80 160 20 20 55 115 40 20 30 70
Costs in the short run versus in the long run ke's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's average total cost each month for various levels of production if uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 Q = 200 70 30 115 55 160 80 1 2 3 Average Total Cost (Dollars per bike) Q=300 Q = 400 Q = 500 Q = 600 20 40 80 160 20 20 55 115 40 20 30 70
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 4PA
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