Table 71 Contains Short-Run Cost Date for Four Different Plants Sizes

question 104

Essay

Table 7.1 contains short-run cost date for four different plants sizes for Jackson's Jazz Instruments. $$\begin{array}{l}\text { Table } 7.1\\\begin{array} { c c c c c } \hline \text { Output } & \text { Plant 1 } & \text { Plant 2 } & \text { Plant } 3 & \text { Plant 4 } \\\hline 100 & 90 & 95 & 100 & 130 \\200 & 70 & 80 & 90 & 115 \\300 & 90 & 65 & 70 & 90 \\400 & 110 & 80 & 60 & 70 \\500 & 130 & 95 & 70 & 55 \\600 & 150 & 125 & 80 & 65 \\\hline\end{array}\end{array}$$ a) What is the best size of plant for each of the following level of output?
i. 200
ii. 300
iii. 400
iv. 500
b) Is Jackson's Jazz Instruments experiencing economies, diseconomies, or constant return to scale?

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Definitions:

Capital Goods

Goods that are used in producing other goods, rather than being bought by consumers directly, such as machinery, tools, and buildings used in production.

Economic Growth

An increase in a nation's production of goods and services, measured by its gross domestic product (GDP) over time.

Consumer Goods

Items produced for personal consumption by individuals and households.

Productivity Of Land

Productivity of land refers to the amount and value of output (crops, minerals, etc.) produced per unit area, indicating the efficiency of land use in agricultural and industrial production.