IBM Corporation was the leading manufacturer of electronic computers in the world. Based on its internal...

 

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IBM Corporation was the leading manufacturer of electronic computers in the world. Based on its internal memoranda, IBM's long-run total cost of producing various quantities of its Pisces (370/168) machines was: C 18,303,800+ 460,800Q Where C is total cost (in dollars) and Q is the number of machines. a. What is the long-run marginal cost of producing such a machine? Does marginal cost depend on output? b. Are there economies of scale in the production of these machines. IBM Corporation was the leading manufacturer of electronic computers in the world. Based on its internal memoranda, IBM's long-run total cost of producing various quantities of its Pisces (370/168) machines was: C 18,303,800+ 460,800Q Where C is total cost (in dollars) and Q is the number of machines. a. What is the long-run marginal cost of producing such a machine? Does marginal cost depend on output? b. Are there economies of scale in the production of these machines.

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Based on the cost function provided for IBMs Pisces machines C 18303800 460800Q where C is the total ... View the full answer