If the minimum at five units. of ng five units is $10, and the marginal cost of
ID: 1111578 • Letter: I
Question
If the minimum at five units. of ng five units is $10, and the marginal cost of producing the fifth unit is $10, then the O True False QUESTION 13 Chloe's Cafe sells gourmet cinnamon rolls. In the long run, the cafe incurs a total cost of $500 to produce 1,000 cinnamon rolls. If Chloe's Cafe exhibits economies of scale between 1,000 and 2,000 cinnamon rolls, the long-run average total cost for 1,500 cinnamon rolls is O a lower than SO.50 O b higher than $500. O c, equal to $0.50. O d, higher than $0.50. QUESTION 14 O depends on toed cost O stays the same when output increases 0 is not included in the total costsExplanation / Answer
13.
a lower than 0.50
because the current cost is 0.50 at 1000 units and if there is economies of scale, that means costs to reduce further
the above is the answer
14.
increases when the output increases
the above is the answer
as these costs moves with production