Answered: 4.a) Consider the following table for a…

4.a) Consider the following table for a wheat farmer in long run: Q (wheat) 12 34 567 VC (in TK) 20 30 60 120 240 500 700 Calculate ATC for each unit. Then find out minimum efficient scale.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.5: Production And Costs In The Long Run

Problem 1ST

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Question

4.a) Consider the following table for a wheat
farmer in long run:
Q (wheat) 12 345 6 7
VC (in
TK)
20 30 60 120 240 500 700
Calculate ATC for each unit. Then find out
minimum efficient scale.
b)What are the relationships between ATC
and MC? Explain it with a relevant graph.

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