Explain what might be the source of the diseconomies of scale that ProPainters experiences. The table shows
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Explain what might be the source of the diseconomies of scale that ProPainters experiences.
The table shows the production function of Bonnie’s Balloon Rides. Bonnie’s pays $500 a day for each balloon it rents and $25 a day for each balloon operator it hires.
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Labor (workers per day) 10 20 30 40 50 Balloons (number) Output (rides per day) Plant 1 Plant 2 Plant 3 Plant 4 6 10 10 15 13 18 15 20 16 21 1 2 13 18 15 20 22 24 24 26 25 3 27 4
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There seems to be a mixup in the question you have provided Youre asking about the source of diseconomies of scale for a company called ProPainters bu...View the full answer
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