Question: Please help me solve this problem. Answer each of the next questions relating to productivity and costs. i) In an industry, cost per ton of
Please help me solve this problem.


Answer each of the next questions relating to productivity and costs. i) In an industry, cost per ton of product us known to be $50 for a plant with capacity of 10 tons oer cay, $40 for a plants with capacity 20 tons per day, $30 for a plant with capacity of 30 tons per day. $25 for a plant with capacity of 40 tons per day and $22 for a plant capacity of 50 tons per day. From this information, can we infer decreasing returns to scale, diminishing returns, or economies of scale over the range 10 to 50 tons per day. Based on this information, what plant size is the minimum efficient scale? ii) At an assembly plant, managers use a progress ratio of 0.8. Currently, workers have assembled 100,000 units of the product and the variable cost per unit is $500. What is the expected variable cost per unit for the 400,000th product assembled? Why?iii) Consider the following information about number of workers and volume of output. Identify the point of diminishing returns and briefly explain why it is the point of diminishing returns. What ; the range of workers over which diminishing returns are experienced? WORKERS VOLUME 100 1000 110 1100 120 1300 130 1600 140 2000 150 2500 160 2900 170 3200 180 3400 190 3200 200 2900
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