You have the following information about long-run total cost for the following firms: Quantity Arnold’s Apples LRATC Belle’s Bananas LRATC Cam’s Cantaloupes LRATC 1 120 33 42 2 140 72 68 3 160 117 98 4 180 168 132 5 200 225 170 6 220 288 212 7 240 357 258 Do any of these firms experience economies of scale? How do you know?
You have the following information about long-run total cost for the following firms: Quantity Arnold’s Apples LRATC Belle’s Bananas LRATC Cam’s Cantaloupes LRATC 1 120 33 42 2 140 72 68 3 160 117 98 4 180 168 132 5 200 225 170 6 220 288 212 7 240 357 258 Do any of these firms experience economies of scale? How do you know?
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.8P
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- You have the following information about long-run total cost for the following firms:
Quantity |
Arnold’s Apples LRATC |
Belle’s Bananas LRATC |
Cam’s Cantaloupes LRATC |
1 |
120 |
33 |
42 |
2 |
140 |
72 |
68 |
3 |
160 |
117 |
98 |
4 |
180 |
168 |
132 |
5 |
200 |
225 |
170 |
6 |
220 |
288 |
212 |
7 |
240 |
357 |
258 |
- Do any of these firms experience economies of scale? How do you know?
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