a) Based on the information provided in the table below, which of the three firms experiences...

 

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a) Based on the information provided in the table below, which of the three firms experiences economies of scale, constant returns to scale, and diseconomies of scale? (15 points) Output TC of Firm 1 TC of Firm 2 TC of Firm 3 1 $100 $ 25 $ 50 2 234 $110 $ 60 $100 3 $120 $100 $150 $130 $160 $200 56 $140 $220 $250 6 $150 $280 $300 b) Discuss and explain the concept of positive return to scale showing it relationship with the quantity of production. (10 points) a) Based on the information provided in the table below, which of the three firms experiences economies of scale, constant returns to scale, and diseconomies of scale? (15 points) Output TC of Firm 1 TC of Firm 2 TC of Firm 3 1 $100 $ 25 $ 50 2 234 $110 $ 60 $100 3 $120 $100 $150 $130 $160 $200 56 $140 $220 $250 6 $150 $280 $300 b) Discuss and explain the concept of positive return to scale showing it relationship with the quantity of production. (10 points)