a) Based on the information provided in the table below: i. Describe the impact of the...

 

Transcribed Image Text:

a) Based on the information provided in the table below: i. Describe the impact of the cost behavior on economies of scale, constant returns to scale, and diseconomies of scale in each firm? Calculate the average cost for each firm to justify your answer. ii. what is the value of fixed cost in each firm? (9 points) (6 points) Output TC firm 1 TC Firm 2 TC Firm 3 0 $2400 $6000 $40 1 $3000 $14000 $100 2 $5600 $30000 $200 3 $7800 $48000 $300 4 $9600 $72000 $1000 5 $11000 $100000 $2000 6 $12000 $144000 $4800 b) "When the total cost of production decrease, we can say that the firm faces positive return to scale". Discuss this statement. (10 points) a) Based on the information provided in the table below: i. Describe the impact of the cost behavior on economies of scale, constant returns to scale, and diseconomies of scale in each firm? Calculate the average cost for each firm to justify your answer. ii. what is the value of fixed cost in each firm? (9 points) (6 points) Output TC firm 1 TC Firm 2 TC Firm 3 0 $2400 $6000 $40 1 $3000 $14000 $100 2 $5600 $30000 $200 3 $7800 $48000 $300 4 $9600 $72000 $1000 5 $11000 $100000 $2000 6 $12000 $144000 $4800 b) "When the total cost of production decrease, we can say that the firm faces positive return to scale". Discuss this statement. (10 points)