Home / Expert Answers / Economics / the-figure-to-the-right-illustrates-the-long-run-average-cost-curve-for-a-company-that-makes-motors-pa677

(Solved): The figure to the right illustrates the long-run average cost curve for a company that makes motors ...




The figure to the right illustrates the long-run average cost curve for a company that makes motors

Suppose the company prod
The figure to the right illustrates the long-run average cost curve for a company that makes motors Suppose the company produces 6 thousand motors per month. Is it experiencing economies of scale, diseconomies of scale, or constant returns to scale? If the company produces 6 thousand motors, then it experiences At what level of output does the firm experience the minimum efficient scale? The minimum efficient scale occurs when the firm produces thousand motors. (Enter your response as an integer.)


We have an Answer from Expert

View Expert Answer

Expert Answer


When the company produces 6 thousand motors, it experiences diseconomies of scale. LRAC curve is U shaped. The downward ward slop
We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe