WW is a small automobile manufacturer. The table below shows WW’s long-run average total cost: Quantity of carsLRATC of car 1$60,000 2 40,000 3 30,000 4 24,000 5 24,000 6 24,000 7 28,000 8 36,000 which levels of output does WW experience economies of scale? ___________ which levels of output does WW experience diseconomies of scale? ___________ which levels of output does WW experience constant returns to scale? ___________

‘Returns to scale’ describe what happens to a firm in the long-run as the scale of production…

which levels of output does WW experience economies of scale? ___________ which levels of output does WW experience diseconomies of scale? ___________ which levels of output does WW experience constant returns to scale? _________

which levels of output does WW experience economies of scale? _____ which levels of output does WW experience diseconomies of scale? _ which levels of output does WW experience constant returns to scale? _____

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 20CTQ: Suppose you have a team of two workers: one is a baker and one is a chef. Explain why file kitchen...

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Question

WW is a small automobile manufacturer. The table below shows WW’s long-run average total cost:

Quantity of cars	LRATC of car
1	$60,000
2	40,000
3	30,000
4	24,000
5	24,000
6	24,000
7	28,000
8	36,000

which levels of output does WW experience economies of scale? ___________

which levels of output does WW experience diseconomies of scale? ___________

which levels of output does WW experience constant returns to scale? ___________

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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