MICROECONOMICS >IA<
MICROECONOMICS >IA<
FD Edition
ISBN: 9781260511055
Author: McConnell
Publisher: MCG
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Chapter 9.8, Problem 3QQ
To determine

shape of the average total cost.

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The unlabeled red curves in this figure derive their shapes from: Ā  a. decreasing, then increasing, short-run returns. b. increasing, then decreasing, short-run returns. c. economies, then diseconomies, of scale. d. diseconomies, then economies, of scale.
Read the question and given information carefully. Show all necessary steps and reasoning that lead to the answers. You nead to draw graphs.Ā  a-Define diseconomies of scale and draw the long run average cost curve of a company that demonstrates diseconomies of scale b-List 2 reasons of diseconomies of scale and (in no more than 50 words for each reason) explain how each reason can contribute to diseconomies of scale
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