Jones Production Started Business with a Small Scale Plant

question 108

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.

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:

Professional Manner

Conducting oneself in a way that is appropriate for the workplace and reflects well on one's professionalism.

Refuse Claims

The act of denying or rejecting assertions, demands, or entitlements, often in a legal or formal context.

Requests For Adjustments

Appeals or petitions for changes or modifications to a product, service, or policy to better meet needs or standards.

Crisis Management Plan

A comprehensive plan developed to respond to an emergency or unexpected event affecting an organization.