A firm finds that at an output level of 7 units its total, Ask an Expert

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A firm finds that at an output level of 7 units, its total cost is $1834; at 8 units of output, its cost is $2048.

a. measuring economies of scale calculate the value of S for this firm at 8 units of output

b. Are there economies of scale at 8 units of output? Explain your reasoning.

c. Explain what the value of S tells you about the relationship between increasing output and increasing costs for this firm. Be as specific as possible in your answer.

Course: Industrial Organization Theory by Waldman

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91529742

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