Question: The table below contains average cost data for four different-sized plants1, 2, 3, and 4which are the only four sizes possible. Output Plant 1 Plant
The table below contains average cost data for four different-sized plants1, 2, 3, and 4which are the only four sizes possible.
| Output | Plant 1 | Plant 2 | Plant 3 | Plant 4 |
| 90 | $115 | $135 | $160 | $180 |
| 140 | 105 | 115 | 140 | 160 |
| 190 | 115 | 100 | 115 | 130 |
| 240 | 130 | 120 | 95 | 120 |
| 290 | 160 | 140 | 120 | 90 |
| 340 | 190 | 160 | 145 | 130 |
| 390 | 225 | 185 | 175 | 160 |
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) 1 2 3 4 . c. Which plant is the right size to produce an output of 190? (Click to select) Plant 1 Plant 2 Plant 3 Plant 4 d. Which plant is the right size to produce an output of 90?
(Click to select) Plant 1 Plant 2 Plant 3 Plant 4
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
