Table 13-10
Consider the following table of long-run total cost for four different firms

-Refer to Table 13-10.Which firm has diseconomies of scale over the entire range of output?

Question

Table 13-10
Consider the following table of long-run total cost for four different firms
 
-Refer to Table 13-10.Which firm has diseconomies of scale over the entire range of output?

Quizplus · Accepted Answer

Firm 3 has diseconomies of scale over the entire range of output, since as output increases, long-run total cost per unit also increases. Firms 1, 2, and 4 all experience economies of scale up to a point before reaching constant returns to scale.

Table 13-10 Consider the Following Table of Long-Run Total Cost for Four