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5. Answer the following question and make sure you show your work. The table below shows the Long-Run Total Cost for three different firms
5. Answer the following question and make sure you show your work. The table below shows the Long-Run Total Cost for three different firms in the block chain payments system business. The output is the number of payments processed per minute. Output 1 Firm A Firm B Firm C $60 $70 3 $80 4 $22 $48 $78 $90 5 $100 $112 6 $21 $34 $49 $66 $85 $106 $110 $150 $192 7 $120 $129 $238 Output level Long-run average total cost 1 2 3 4 5 6 7 Firm A: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm B: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm C: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER)
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