Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year.
a.Complete the table by finding the average cost for each scale.
$$\begin{array} { c c c c }
\text { Year } & \text { Total output } & \begin{array} { l }
\text { Total cost } \
\text { (dollars) }
\end{array} & \begin{array} { c }
\text { Average cost } \
\text { (dollars) }
\end{array} \
\hline 1 & 100 & 1,000 & - \
2 & 240 & 2,000 & - \
3 & 500 & 4,000 & - \
4 & 1,000 & 8,000 & - \
5 & 1,800 & 16,000 & - \
6 & 2,500 & 32,000 & - \
\hline
\end{array}$$
b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

Question

Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year.
a.Complete the table by finding the average cost for each scale.
 $$\begin{array} { c c c c } 
\text { Year } & \text { Total output } & \begin{array} { l } 
\text { Total cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Average cost } \
\text { (dollars) }
\end{array} \
\hline 1 & 100 & 1,000 & - \
2 & 240 & 2,000 & - \
3 & 500 & 4,000 & - \
4 & 1,000 & 8,000 & - \
5 & 1,800 & 16,000 & - \
6 & 2,500 & 32,000 & - \
\hline
\end{array}$$ 
b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

Quizplus · Accepted Answer

The Answer of Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year.
a.Complete the table by finding the average cost for each scale.
 $$\begin{array} { c c c c } 
\text { Year } & \text { Total output } & \begin{array} { l } 
\text { Total cost } \
\text { (dollars) }
\end{array} & \begin{array} { c } 
\text { Average cost } \
\text { (dollars) }
\end{array} \
\hline 1 & 100 & 1,000 & - \
2 & 240 & 2,000 & - \
3 & 500 & 4,000 & - \
4 & 1,000 & 8,000 & - \
5 & 1,800 & 16,000 & - \
6 & 2,500 & 32,000 & - \
\hline
\end{array}$$ 
b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

Jones Production Started Business with a Small Scale Plant BOver What Range of Total Product (Output)did Jones Production Experience