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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 1
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,TC 1 or TC 2,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 combinations be the same?
d. Starting from producing two units,Consolidated's managers decide to double their 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 to scale?
a. Which column,TC 1 or TC 2,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 combinations be the same?
d. Starting from producing two units,Consolidated's managers decide to double their 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 to scale?
Explanation
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a)The distinction between the short-run ...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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