Jones Production Started Business with a Small Scale Plant BOver What Range of Total Product (Output)did Jones Production Experience

question 210

Essay

Jones Production started business with a small scale plant.Fortunately for Smith,the owner of Jones Production,the business grew rapidly.The table below gives the total costs and the associated output for each year.
a.Complete the table by finding the average cost for each scale.
$$\begin{array} { c c c c } \text { Year } & \text { Total output } & \begin{array} { l } \text { Total cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Average cost } \\\text { (dollars) }\end{array} \\\hline 1 & 100 & 1,000 & - \\2 & 240 & 2,000 & - \\3 & 500 & 4,000 & - \\4 & 1,000 & 8,000 & - \\5 & 1,800 & 16,000 & - \\6 & 2,500 & 32,000 & - \\\hline\end{array}$$
b.Over what range of total product (output)did Jones Production experience economies of scale,constant returns to scale,and diseconomies of scale?

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Definitions:

Categorical Data

Labels or names used to identify categories of like items.

Goodness of Fit

A statistical analysis that measures how well observed data match the values expected by a model.

Independence Test

A statistical procedure used to determine whether two or more variables are independent of each other within a population.

Frequencies of Repairs

Frequencies of Repairs refer to the number of times repairs have been made within a specific period, indicating the maintenance needs or reliability of an item.