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8. You are a management consultant hired by the Rio Loco Vineyards to estimate the costs of raising grapes in an arid region of New
8. You are a management consultant hired by the Rio Loco Vineyards to estimate the costs of raising grapes in an arid region of New Mexico. If labor costs $6,000 per unit of time and capital costs $200 per unit of time, you determine that the least-cost input combinations for various levels of grape production are: Output (bushels) Labor Capital 100,000 30 100 200,000... . .IIIIN 51 270 300,000. 56 420 400,000.. 60 600 500,000. 62 640 600,000 84 1080 a. Complete the table below: Output (bushels) LTC LAC LMC 100,000.. $ 200,000.. 300,000. 400,000. 500,000. 600,000.. b. Over what range of output do economies of scale exist in the production of grapes? c. Over what range of output do diseconomies of scale exist in the production of grapes
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