Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please type the answer Suppose that the Ottawa Bagel Factory faces the following longrun totalcost curve The company is presently deciding which size of factory

please type the answer

image text in transcribed
Suppose that the Ottawa Bagel Factory faces the following longrun totalcost curve The company is presently deciding which size of factory it should build. Cut U'Mm 1 F 200 450 T00 1400 W a. When the Ottawa Bagel Factory is deciding which size cfictory to build, which time horizon for decisionmaking is it adopting, the shortrun or longrun?I 1). Next suppose the Ottawa Bagel Factory anticipates that it will produce 200 bagels. Which of the above shortrun totalcost cones represents the factory size the company should choose? How would your answer change if instead it anticipamd producing 450 units and T00 units? c. Between 200 and T00 units, does the Ottawa Bagel Factory experience economies or diseconomies of scale ? d. What is the minimum efcient scale of production facing the Ottawa Bagel Factory? e. For the levels of output where the averagehtalcost curve is falling, where must the marginalcost curve be in relation to the averagetotalcost curve? For the levels cfcutput Where the averagemtalcost curve is rising, where is the marginalcost curve relative to the averagetntal cost cun'e

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

Advanced Placement Microeconomics

Authors: Bill Hurd

1st Edition

1531150306, 978-1531150303

More Books

Students also viewed these Economics questions

Question

Explain all drawbacks of application procedure.

Answered: 1 week ago

Question

Explain the testing process of accounting 2?

Answered: 1 week ago