Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (6) 130, (c) 160, and (d) 250 units of output? Average Costs 40 30 ATC ATC 20 ATC 10 50 130 160 250 30 60 90 120 150 180 210 240 270 300 Output a. 50 units of output: (Click to select) v b. 130 units of output: (Click to select) c. 160 units of output: (Click to select) d. 250 units of output (Click to select) v ATC
Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (6) 130, (c) 160, and (d) 250 units of output? Average Costs 40 30 ATC ATC 20 ATC 10 50 130 160 250 30 60 90 120 150 180 210 240 270 300 Output a. 50 units of output: (Click to select) v b. 130 units of output: (Click to select) c. 160 units of output: (Click to select) d. 250 units of output (Click to select) v ATC
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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