4. Suppose a firm is planning for the short-run. The firm's fixed cost is 100, and...

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4. Suppose a firm is planning for the short-run. The firms fixed cost is 100, and its variable cost per unit of output is 5.

business economics

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Answer 1

Answer #1

Ave - a FC ve TC me 0 100 0 100 - 100 s los S 2 100 co 1105 3 loo is uss I loo 20 120 S 100 25 125 S 1 100 30 130 S 7 100 35

TC=FC+VC

MC=∆TC/∆Q

AFC=FC/Q

AVC=VC/Q

ATC=AFC+AVC

B.Yes,the firm displays economies of scale because average cost falls continuously with rise in output

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Answer 2

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