The following table gives the short-run and long-run total costs for various levels of output of Consolidated National Acme, Inc.:

a. Which column, TC1 or TC2, gives long-run total cost, and which gives short-run total cost? How do you know?
b. For each level of output, find short-run TFC, TVC, AFC, AVC, and MC.
c. At what output level would the firm’s short-run and long-run input mixes be the same?
d. Starting from producing two units, Consolidated’s managers decide to double production to four units. So they simply double all of their inputs in the long run. Comment on their managerial skills.
e. Over what range of output do you see economies of scale? Diseconomies of scale? Constant returns toscale?

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