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Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6 7 Firm A 10 21 32
Consider the following table of long-run total costs for three different firms:
Quantity | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Firm A | 10 | 21 | 32 | 43 | 54 | 66 | 80 |
Firm B | 10 | 15 | 18 | 23 | 35 | 50 | 65 |
Firm C | 10 | 19 | 28 | 37 | 46 | 55 | 60 |
Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.)
Firm | Economies of Scale | Diseconomies of Scale | |
---|---|---|---|
A | ? | ? | |
B | ? | ? | |
C | ? | ? |
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