Suppose that the long-run total cost function for a firm is LTC = 22,600Q - 300Q2 + Q3,and its long-run marginal cost function is LMC = 22,600Q - 600Q + 3Q2. (These cost functions yield a typical U-shaped long-run average cost curve.)
At what levels of output will the firm face economies of scale?
The firm will experience economies of scale between and units of output.
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The firm will experience diseconomies of scale
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