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IBM Corporation was the leading manufacturer of electronic computers in the world. Based on its internal memoranda, IBM's long-run total cost of producing various
IBM Corporation was the leading manufacturer of electronic computers in the world. Based on its internal memoranda, IBM's long-run total cost of producing various quantities of its Pisces (370/168) machines was: C 18,303,800+ 460,800Q Where C is total cost (in dollars) and Q is the number of machines. a. What is the long-run marginal cost of producing such a machine? Does marginal cost depend on output? b. Are there economies of scale in the production of these machines.
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