a. On Jackies LRAC curve, what is the average cost of producing 40, 75, and 85 rides
Question:
a. On Jackie’s LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week?
b. What is Jackie’s minimum efficient scale?
c. Does Jackie’s experience economies of scale or diseconomies of scale?
Jackie’s Canoe Rides rents canoes at $100 per day and pays $50 per day for each canoe operator it hires. The table shows the firm’s production function.
Transcribed Image Text:
Labor (workers per day) Plant 1 10 20 30 40 Canoes 20 40 65 75 10 Output (rides per day) Plant 2 Plant 3 40 55 60 75 75 90 85 100 20 30 Plant 4 65 85 100 110 40
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