Essay
Suppose that a firm is producing 100 units of output at a total cost of $20,000.
a. Give a numerical example of this firm with economies of scale as it expands output.
b. Give a numerical example of this firm with constant economies of scale as it expands output.
c. Give a numerical example of this firm with diseconomies of scale as it expands output.
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a. At 100 units of output, ATC = 20,000/...View Answer
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