You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology...

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You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by th

How do average costs vary with output? As quantity increases, average costs decrease How many teams are required to produce 1

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Answer 1

Answer #1

K is fixed at 5. Short- run production function becomes ou = 20KL = 20x5XL = 100L Total cost function :- Te(O) = Gk+ WL + 200

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