Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi I need some help with doing the Long run average total cost table and questions 2, 4 ,5 and 6 Class Work Long Run

Hi I need some help with doing the Long run average total cost table and questions 2, 4 ,5 and 6

image text in transcribedimage text in transcribedimage text in transcribed
Class Work Long Run Costs 1. Use the information in the table to build the LRATC: SRAT Q C1 SRATC2 SRATC3 Q LRATC 100 30 32 33 100 200 28 30 31 200 300 26 28 29 300 400 24 26 27 400 500 22 20 26 500 600 24 18 25 600 700 26 16 24 700 800 14 20 800 900 30 12 19 900 1000 32 10 9 1000 1 100 34 12 7 1100 1200 36 14 5 1200 1300 38 16 3 1300 1400 40 18 1400 1500 42 20 2 1500 1600 44 22 W 1600 1700 46 24 4 1700 1800 48 26 UT 1800 1900 50 28 6 1900 2. In the LRATC you built above, identify the range of output (Q) where the industry has increasing, constant and decreasing returns to scale.5. Determine whether the following Production Matrix describes Increasing, Decreasing or Constant Returns to scale: 6 710 998 1218 1402 1568 1710 5 650 914 1114 1282 1428 1568 4 582 818 998 1146 1282 1402 K 3 508 710 864 998 1114 1218 2 418 582 710 818 914 998 11 300 418 508 582 650 710 5 6 6. Determine whether the following Production Matrix describes Increasing, Decreasing or Constant Returns to scale: 6 692 980 1200 1384 1550 1692 5 632 896 1096 1264 1410 1550 4 564 800 980 1128 1264 1384 K 3 490 692 846 980 1096 1200 2 400 564 692 800 896 980 1 282 400 490 564 632 692 2 3 4 5 64. Determine whether the following Production Matrix describes Increasing, Decreasing or Constant Returns to scale: 6 610 898 1118 1302 1468 1610 5 550 814 1014 1182 1328 1468 4 482 718 898 1046 1182 1302 K W 408 610 764 898 1014 1118 2 318 482 610 718 814 898 1 200 318 408 482 550 610 2 3 5 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Micromotives And Macrobehavior

Authors: Thomas Schelling

1st Edition

0393329461, 9780393329469

More Books

Students also viewed these Economics questions

Question

2. I try to be as logical as possible

Answered: 1 week ago