Number of Factories 1 2 3 Q = 100 440 580 720 Q = 200 320 400 480 Average Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 240 240 320 Q = 500 480 400 320 Q=600 720 580 440 Suppose Ike's Bikes is currently producing 600 bikes per month in its only factory. Its short-run average cost is $ per bike. Suppose Ike's Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using
Number of Factories 1 2 3 Q = 100 440 580 720 Q = 200 320 400 480 Average Cost (Dollars per bike) Q = 300 Q = 400 240 320 240 240 240 320 Q = 500 480 400 320 Q=600 720 580 440 Suppose Ike's Bikes is currently producing 600 bikes per month in its only factory. Its short-run average cost is $ per bike. Suppose Ike's Bikes is expecting to produce 600 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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