Сapital 3 ------ ------ 2 ----- -- ------- Q = 900 1 ----- ----- --- Q = 600 Q = 300 10 20 30 Labor Over the output range shown above, production shows returns to scale and Decreasing ; LRMC is rising Increasing ; LRAC is falling O Increasing ; LRMC is falling Decreasing ; LRAC is rising

Сapital 3 ------ ------ 2 ----- -- ------- Q = 900 1 ----- ----- --- Q = 600 Q = 300 10 20 30 Labor Over the output range shown above, production shows returns to scale and Decreasing ; LRMC is rising Increasing ; LRAC is falling O Increasing ; LRMC is falling Decreasing ; LRAC is rising

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Сapital
3
----- -----
.---. ...---
Q = 900
1
..--- ----- -----
Q = 600
= 300
10
20
30
Labor
Over the output range shown above, production shows
returns to scale and
Decreasing ; LRMC is rising
Increasing ; LRAC is falling
Increasing ; LRMC is falling
Decreasing ; LRAC is rising

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