Question: The table below contains average cost data for four different-sized plants-1, 2, 3, and 4-which are the only four sizes possible. Output Plant 1 Plant

 The table below contains average cost data for four different-sized plants-1,

The table below contains average cost data for four different-sized plants-1, 2, 3, and 4-which are the only four sizes possible. Output Plant 1 Plant 2 Plant 3 Plant 4 120 $145 $165 $190 $210 170 135 145 170 190 220 145 130 145 160 270 160 150 125 150 320 190 170 150 120 370 220 190 175 160 420 255 215 205 190 a. What is the economic capacity output for each of the four plants? Plant 1: Plant 2: Plant 3: Plant 4: b. In what plant and at what output is minimum long-run average cost achieved? Output of in (Click to select) v c. Which plant is the right size to produce an output of 220? (Click to select) v d. Which plant is the right size to produce an output of 120? Click to select) v

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!