8 In problem 4, Charlies Chocolates buys a second plant and now the total product of each...

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8 In problem 4, Charlie’s Chocolates buys a second plant and now the total product of each quantity of labour doubles. The total fixed cost of operating each plant is a50 a day. The wage rate is a50 a day. a Set out the average total cost curve when Charlie’s operates two plants. b Draw the long-run average cost curve. c Over what output range is it efficient to operate one plant and two plants?

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Economics

ISBN: 9781509540235

6th Edition

Authors: Michael Parkin, Melanie Powell, Kent Matthews

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