Question the table shows the production function of bonnies, Ask an Expert

Economics

Question: The table shows the production function of Bonnie's Balloon Rides. Bonnie's pays $500 a day for each balloon it rents and $25 a day for each balloon operator it hires.

a. On Bonnie's LRAC curve, what is the average cost of producing 15 rides and 18 rides a day?

b. Explain how Bonnie's uses its long-run average cost curve to decide how many balloons to rent.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93103261

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