1.The four questions refer to the following table in which columns 1, 2, and 3 give the economically efficient combinations of labor and capital for various output levels. The price of capital is $50,

1.
The four questions refer to the following table in which columns 1, 2, and 3 give the economically efficient combinations of labor and capital for various output levels. The price of capital is $50, and the price of labor is $30.
(1)
(2)
Capital
(3)
(4)
Long-Run
Total Cost
(5)
Average Cost
(6)
______
Using the above table, answer the following questions.
Economies of scale exist through ______ units of output because _________ is ____________.
At 20 units of output
LTC
= $_________ and
LAC
= $______. Between zero and 20 units
LMC
= $______.
At 40 units of output
= $______ and
= $______. Between 20 and 40 units
Diseconomies of scale exist beyond ______ units of output because _________ is _________.
edit
Click here to edit your answer.
Words: 0
Loading essay editor, please wait…
Question Feedback
Words: , Characters:
Loading feedback editor, please wait…
Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets: There are numerous relatively small sellers, each seller is a pricetaker, and the products are quite similar.
How could we argue that these markets are
competitive?
Could each firm face a demand curve that is
perfectly elastic?
How profitable do you expect grocery stores and gasoline stations to be in the long run?
Rich Text Editor, essay_18787Editor toolbars Bold Italic Underline Strikethrough Subscript Superscript Remove Format Find Replace Select All Spell Check As You Type (Selected) Cut Copy Paste Paste as plain text Paste from Word Undo RedoFontArialSize14px Insert/Remove Numbered List Insert/Remove Bulleted List Single Space Block Double Space Block Decrease Indent Increase Indent Add Hanging Indent Link Unlink Image Insert Special Character Maximize Math Editor Chemistry EditorPress ALT 0 for helpâ—¢Elements pathbodyp
Airline industry experts generally believe that because of the “highly competitive” nature of U.S. airline markets, it is usually impossible to pass on higher jet fuel prices to passengers by raising ticket prices.
What factors do you suppose contribute to making U.S. airline markets “highly competitive”?
Accepting the premise that U.S. airline markets are indeed highly competitive, analyze in both the short run and long run the difficulty of raising ticket prices when jet fuel prices rise.