The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane. Concept Introduction: Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output. Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

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Answer 1

Question

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

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Answer 2

Question

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

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Answer 3

Question

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

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Answer 4

Question

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

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Answer 5

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

Answer 6

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

Answer 7

Chapter 22, Problem 17P

To determine

The firm’s minimum efficient scale and would there be leftward or rightward movement along the firm’s long run average total cost curve when the firm’s plant size reduces due to a hurricane.

Concept Introduction:

Diseconomies of scale: The diseconomies of scale are a situation in which long run average cost rises due to the increase in output.

Economies of scale: Economies of scale is a situation in which increasing of plant size leads to lower average cost curve. The best example of economies of scale is specialization and division of labour. This enables the workers to do efficient tasks with a little training so this leads to a lower average total cost

Average total cost: It is the average of total cost incurred in the production and it is found out by dividing the total cost by the quantity of goods produced.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 22 - Prob. 22.1LO Ch. 22 - Prob. 22.2LO Ch. 22 - Prob. 22.3LO Ch. 22 - Prob. 22.4LO Ch. 22 - Prob. 22.1SC Ch. 22 - Prob. 22.2SC Ch. 22 - Prob. 22.3SC Ch. 22 - Prob. 22.4SC Ch. 22 - Prob. 1CTQ Ch. 22 - Prob. 2CTQ

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Chapter 22 Solutions