Minimum efficient scale occurs at an output of 10000 d. 35000 22000 e. 43000 c. 28000   At which output level does the firm begin to experience diseconomies of scale? 10000 d. 35000 22000 e. 43000 28000   The firm added capital, increased its output and shifted from ATC1 to ATC2. By how much did it decrease its cost per unit?  _________________

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter17: Long-term Investment Analysis
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. Minimum efficient scale occurs at an output of

  1. 10000 d. 35000
  2. 22000 e. 43000 c. 28000

 

At which output level does the firm begin to experience diseconomies of scale?

  1. 10000 d. 35000
  2. 22000 e. 43000
  3. 28000

 

The firm added capital, increased its output and shifted from ATC1 to ATC2. By how much did it decrease its cost per unit?  _________________

 

 

Costs per
Unit
AȚC1
ATC2
ATC3
LRAC
$32000
$29000
$27000
10000
22000
28000
35000
43000
Quantity (Output)
Transcribed Image Text:Costs per Unit AȚC1 ATC2 ATC3 LRAC $32000 $29000 $27000 10000 22000 28000 35000 43000 Quantity (Output)
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