Tut 5
OMRRAY001
1
C
2
9
3
C
4
Workers
5
6
Totalcost TotalProduct
5
100
MC
The
an
120
8
DO
00
30
marginal
increase in
cost is the
quantity
126.67
per
perhour
cost attributed
change in
produced
surfboard
perunit
So increasing production from 5 to 8
surfboards
additional surfboard
costRb67 per
5
9
Decreasing returns
been doubled
601
to scale The inputs have
but output
This is not
hasonly
increased
by
economies of scaleas
dis
we do not know what has happend to costs
b
necesarily
Per unit costs
398
are
9
528
neither economies
not
changing
as output
perunit
120.25
dieconomies of
scale
My answer from a is unaffected
to
increases
6
9
2
I
b
4
Total ProductTotalfixedcostTotalvariablecottarTotal cost
Labour
40
as
652 35
2558
356855 43
15
go
40
40
40
on
40
b 406 46
4012 52
5840 18
24
This is achieved by
gg
64
increasing
AryCost
MarginalCost
ÉÉ1
75
643
8
1.66
149
workers
from
0.6
9
4
t to 2