QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it would be able to produce and the total cost for various plant sizes, as shown in the accompanying table. If the firm is currently using plant size C, the firm is experiencing which of the following? Plant Size Quantity Total Cost (S) A 1 10 B 10 80 100 900 D 200 2,000 500 5,500 F 1,000 15,000 O economies of scale o diseconomies of scale O constant returns to scale O diminishing marginal product O increasing marginal product
QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it would be able to produce and the total cost for various plant sizes, as shown in the accompanying table. If the firm is currently using plant size C, the firm is experiencing which of the following? Plant Size Quantity Total Cost (S) A 1 10 B 10 80 100 900 D 200 2,000 500 5,500 F 1,000 15,000 O economies of scale o diseconomies of scale O constant returns to scale O diminishing marginal product O increasing marginal product
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 8MC
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