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Q L* K*
70 5 20
120 7 7
200 12 24
R=120
W=15
What is the MRTS, long-run total cost, and long-run average cost when the firm produces 70? Show your work.
What is the MRTS, long-run total cost, and long-run average cost when the firm produces 120? Show your work.
What is the MRTS, long-run total cost, and long-run average cost when the firm produces 200? Show your work.
Over what range of output does the firm experience diseconomies of scale? Explain.
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