Table 13-15
Consider the following table of long-run total cost for four different firms:

-Refer to Table 13-13.Which firm has economies of scale and then diseconomies of scale as output increases from 1 to 7?
A) Firm 1
B) Firm 2
C) Firm 3
D) Firm 4

Question

Table 13-15
Consider the following table of long-run total cost for four different firms:
 
-Refer to Table 13-13.Which firm has economies of scale and then diseconomies of scale as output increases from 1 to 7?
A) Firm 1 
B) Firm 2 
C) Firm 3 
D) Firm 4

Quizplus · Accepted Answer

Firm 1 has economies of scale as output increases from 1 to 5, and diseconomies of scale as output increases from 5 to 7.

Table 13-15 Consider the Following Table of Long-Run Total Cost for Four