5. Answer the following question and make sure you show your work. The table below shows...

 

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5. Answer the following question and make sure you show your work. The table below shows the Long-Run Total Cost for three different firms in the block chain payments system business. The output is the number of payments processed per minute. Output 1 Firm A Firm B Firm C $60 $70 3 $80 4 $22 $48 $78 $90 5 $100 $112 6 $21 $34 $49 $66 $85 $106 $110 $150 $192 7 $120 $129 $238 Output level Long-run average total cost 1 2 3 4 5 6 7 Firm A: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm B: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm C: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) 5. Answer the following question and make sure you show your work. The table below shows the Long-Run Total Cost for three different firms in the block chain payments system business. The output is the number of payments processed per minute. Output 1 Firm A Firm B Firm C $60 $70 3 $80 4 $22 $48 $78 $90 5 $100 $112 6 $21 $34 $49 $66 $85 $106 $110 $150 $192 7 $120 $129 $238 Output level Long-run average total cost 1 2 3 4 5 6 7 Firm A: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm B: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER) Firm C: Circle one: exhibits economies of scale, diseconomies of scale, constant returns to scale. (EXPLAIN YOUR ANSWER)

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To determine whether each firm exhibits economies of scale diseconomies of scale or constant returns ... View the full answer