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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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