In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output is canisters and $1,200 when output is 100 canisters. When this popcorn company increases producti From 70 to 100 canisters, it exhibits diseconomies of scale because total cost is falling as output rises. diseconomies of scale because average total cost is rising as output rises. economies of scale because total cost is falling as output rises. economies of scale because average total cost is falling as output rises.

In the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output is canisters and $1,200 when output is 100 canisters. When this popcorn company increases producti From 70 to 100 canisters, it exhibits diseconomies of scale because total cost is falling as output rises. diseconomies of scale because average total cost is rising as output rises. economies of scale because total cost is falling as output rises. economies of scale because average total cost is falling as output rises.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3CQQ

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