Lafourche Parish, Louisiana, is the home to three crawfish farms. Thibodeaux Crawfish Farm harvests 40,000 pounds of crawfish per month at a total cost of $50,000. The Mardi Gras Mud Bug Cooperative harvests 25,000 pounds of crawfish per month at a total cost of $35,000. Lafourche Farms harvests 90,000 pounds of crawfish per month at a total cost of $140,000. These data suggest that there are significant economies of scale in crawfish production. Do you agree or disagree with this statement? Explain your answer.
Lafourche Parish, Louisiana, is the home to three crawfish farms. Thibodeaux Crawfish Farm harvests 40,000 pounds of crawfish per month at a total cost of $50,000. The Mardi Gras Mud Bug Cooperative harvests 25,000 pounds of crawfish per month at a total cost of $35,000. Lafourche Farms harvests 90,000 pounds of crawfish per month at a total cost of $140,000. These data suggest that there are significant economies of scale in crawfish production. Do you agree or disagree with this statement? Explain your answer.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.2: Production And Costs
Problem 2QQ
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Lafourche Parish, Louisiana, is the home to three crawfish farms. Thibodeaux Crawfish Farm harvests 40,000 pounds of crawfish per month at a total cost of $50,000. The Mardi Gras Mud Bug Cooperative harvests 25,000 pounds of crawfish per month at a total cost of $35,000. Lafourche Farms harvests 90,000 pounds of crawfish per month at a total cost of $140,000. These data suggest that there are significant economies of scale in crawfish production. Do you agree or disagree with this statement? Explain your answer.
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