Figure 9.6 shows that two firms producing 6 units each have a higher total cost than one firm producing 12 units. Given the cost function underlying Figure 9.6, would two firms each producing output Q (> 0) always incur more total cost than one firm producing 2Q? Figure 9.6

Chapter 9, Exerise Questions #29

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 Figure 9.6 shows that two firms producing 6 units each have a higher total cost than one firm producing 12 units. Given the cost function underlying Figure 9.6, would two firms each producing output Q (> 0) always incur more total cost than one firm producing 2Q?

Figure 9.6

AC = 10 + 60/Q 15 10 MC = 10 12 15 Q, Units per day AC, MC, $ per unit 20

Related Book For answer-question

Managerial Economics and Strategy

2nd edition

Authors: Jeffrey M. Perloff, James A. Brander

ISBN: 978-0134167879