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3. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Spokane.
3. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Spokane. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthlyr short-run average total cost [SRATCII for various levels of production if it operates out of one, two, orthree factories. (Note: Q equals the total quantity of scooters produced by all factories.) Average Total Cost (Doars per scooter) Number of Factories Q = 50 Q = 100 Q = 150 Q = 200 Q = 250 Q = 300 1. 220 140 120 160 240 400 2 310 1'30I 120 120 1.90 31.0 3 400 240 160 120 1.40 220 Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its shortrun average total cost is- per scooter. Suppose Scooter's Scooters is expecting to produce 300 scooters per month for several years. In this case. in the long run, it Iwould choose to produce scooters using v . \fNote: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 400 A 380 SRATC, 320 280 SRATC, 24 200 AVERAGE TOTAL COST (Dollars per scooter) SRATC, 180 120 LRATC 80 40 250 300 350 50 100 150 200 QUANTITY (Scooters)
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