The long-run total cost schedule of a perfectly competitive firm that produces blueberries is as follows:
TABLE 8-2

-Refer to Table 8-2. What is a firm that expands from producing 1000 to 2000 kilograms of blueberries in the long run experiencing?

Question

The long-run total cost schedule of a perfectly competitive firm that produces blueberries is as follows:
TABLE 8-2
 
-Refer to Table 8-2. What is a firm that expands from producing 1000 to 2000 kilograms of blueberries in the long run experiencing?

Quizplus · Accepted Answer

The firm is experiencing economies of scale as the long-run average total cost decreases as production increases.

The Long-Run Total Cost Schedule of a Perfectly Competitive Firm