3. Consider the table below of long-run total costs for three different firms:Does each of these firms experience economies of scale or diseconomies of scale?Explain your answer! Quantity12 3 4 5 6 7Firm A$60 $70 $80 $90 $100 $110 $1201121Firm B2439567596 119Firm C3449 6685 106 129Does each of these firms experience economies of scale or diseconomies of scale?Explain your answer!

In ling run firm can use the both factors of production as variable and exhibits the return to…

Quantity 1 2 4 7 $60 $70 11 $80 $90 $100 $110 $120 24 39 56 34 49 66 Firm A Firm B 75 96 119 85 106 129 Firm C 21 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer! 3.

Quantity 1 2 4 7 $60 $70 11 $80 $90 $100 $110 $120 24 39 56 34 49 66 Firm A Firm B 75 96 119 85 106 129 Firm C 21 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer! 3.

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 8QR

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Question

3. Consider the table below of long-run total costs for three different firms:

Does each of these firms experience economies of scale or diseconomies of scale?
Explain your answer!

Quantity
1
2 3 4 5 6 7
Firm A
$60 $70 $80 $90 $100 $110 $120
11
21
Firm B
24
39
56
75
96 119
Firm C
34
49 66
85 106 129
Does each of these firms experience economies of scale or diseconomies of scale?
Explain your answer!

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