Solved by Expert Tutors
Solved by Expert Tutors
Question

Lynette owns a bakery. If she expands the size of her bakery she finds

that her average total cost of producing bread remains unchanged in the long run. What type of returns to scale would you say Lisette is experiencing (increasing, constant or decreasing)? Also, her average total cost to produce 100 cookies is $0.25 per cookie. The marginal cost is constant at $0.10 for all cookies produced. Can you calculate her total cost to produce 100 cookies?

What if her average total cost had decreased; what type of economies of scale would she be experiencing?

Step-by-step answer

entesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit

  • Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit aia pulvia. Fusce dui l
  • nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequ


at, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis

  • fficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fus


Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet,

  • facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequ
  • a. Fusce dui lectus, congue vel laousce dui le vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum d
acinia pulvi

risus


Graph.png

Graph.png
ipis ur l , dictum v sus ante ec facilis lestie icitur lao icitur lao ipiscing iscin iscin t s ante,

Subscribe to view the full answer

Subject: Business, Economics

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Economics tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes