The figure to the right illustrates the long-run average cost curve for a company that makes motors Suppose the company produces & thousand meters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 thousand motors, then it experiences Average total cont 45.00 41.00 40.00 36.00 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000s)
The figure to the right illustrates the long-run average cost curve for a company that makes motors Suppose the company produces & thousand meters per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 4 thousand motors, then it experiences Average total cont 45.00 41.00 40.00 36.00 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 0.00 Long-nun average cost 4610 12 14 16 18 20 Quantity (motors per month in 1,000s)
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 20P
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