Question

Table 13-12 Quantity Long-Run Total Cost (Dollars) Firm 1 Firm 2 Firm 3 Firm 4 1 180 120 150 210 2 350 250 300 340 3 510 390 450 490 4 660 540 600 660 5 800 700 750 850 6 930 870 900 1,060 7 1,050 1,050 1,050 1,290 Refer to Table 13-12. Which firm's long-run marginal cost decreases as output increases? a. Firm 3 b. Firm 2 c. Firm 1 d. Firm 4

          Table 13-12
Quantity
Long-Run Total Cost
(Dollars)
Firm 1 Firm 2 Firm 3 Firm 4
1
180 120 150 210
2
350 250 300 340
3
510 390 450 490
4
660 540 600 660
5
800 700 750 850
6
930 870 900 1,060
7
1,050 1,050 1,050 1,290
Refer to Table 13-12. Which firm's long-run marginal cost decreases as output increases?
a. Firm 3
b. Firm 2
c. Firm 1
d. Firm 4

Table 13-12
Quantity
Long-Run Total Cost
(Dollars)
Firm 1 Firm 2 Firm 3 Firm 4
1
180 120 150 210
2
350 250 300 340
3
510 390 450 490
4
660 540 600 660
5
800 700 750 850
6
930 870 900 1,060
7
1,050 1,050 1,050 1,290
Refer to Table 13-12. Which firm's long-run marginal cost decreases as output increases?
a. Firm 3
b. Firm 2
c. Firm 1
d. Firm 4

Added by Sean M.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Majid Borumand

Step 1

To do this, we can look at the long-run total cost for each firm at different quantities of output. Looking at the table, we can see that Firm1's long-run total cost increases as output increases. For example, at a quantity of 1,050, the long-run total cost Show more…

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b. Firm2 a. Firm3 Refer to Table 13-12. Which firm's long-run marginal cost decreases as output increases? Quantity 1,050 1,050 1,050 290 930 870 900 1,060 800 700 750 850 510 390 450 490 350 250 300 340 180 120 150 210 Firm1 Firm2 Firm3 Firm (Dollars) Long-Run Total Cost Table 13-13