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The table shows the production function of Bob's Arcade. Labor (workers per day) Option A (10 pinballs) Option B (15 pinballs) Option C (20 pinballs)
The table shows the production function of Bob's Arcade.
Labor
(workers per day) Option A (10 pinballs) Option B (15 pinballs) Option C (20 pinballs)
1 10 17 20
2 15 23 26
3 18 27 30
4 20 30 33
Bob's pays $20 a day to rent a pinball and $70 a day to hire a worker.
a)Graph the ATC curves for all options.
b)What is Bob's minimum efficient scale?
c)Identify the LRAC curve on your graph.
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