Long-run costs for the american production company


The following table shows some of the long-run costs for the American Production Company

Quantity of output Total cost Average cost Marginal cost

50 A $1,000 -

51 $52,000 D F

52 B $1,038 G

53 C E $5,000

Fill in the blanks (a) through (g), showing the process to compute the numbers for the blanks. Over the range of output levels shown above, does the firm's production function have economies of scale or diseconomies of scale? Explain the reason for your answer.

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Business Management: Long-run costs for the american production company
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