38 Refer to the figure below The firm in question exhibits e

38. Refer to the figure below. The firm in question exhibits economies of scale: LRAC MC SRATC SRAT MC SRATC Quantity a. Along the decreasing portion of the long-run average cost curve (LRAC), up until Oo. b Along the increasing portion of the long-run average cost curve (LRAC), after o. c. At 20, where LRAC is minimum. d. Anyw cost per unit.

Solution

ans 38 option a is correct

ans 39 option a is correct where MR=MC i.e .80;400

ans 40 option a is correct where MR=MC i.e .80;400