Question

In: Economics

In the short-run, Joe’s metal roofing company has a 2,000 square foot shop, two roll-forming metal...

  1. In the short-run, Joe’s metal roofing company has a 2,000 square foot shop, two roll-forming metal machines, 5 employees, and two part time employees.

Table 1

Number of Workers

Sheets of Metal per day (in pounds)

0

0

1

10

2

22

3

32

4

40

5

46

6

50
  1. Define economies of scale and draw a graph to help your explanation.
  2. If Joe decides to increase his long-run output, why might we expect average total costs to increase? Use a graph to help explain.

Solutions

Expert Solution


Rahul Sunny answered 2 years ago
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