Consider Two Firms a and B

question 65

Essay

Consider two firms A and B.Firm A notices that its total costs have declined by 10 percent each time its cumulative output has doubled.Firm B notices that its average cost of production declined by 10 percent after it increased production by 5 percent and hired 50 more workers to work with its existing unused equipments.Explain graphically whether the experiences of these two firms will have similar implications on the long run average cost of production.

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Definitions:

Drug Treatment Courts

Specialized court programs that aim to address the underlying substance use issues of individuals involved in the criminal justice system.

Nunavut Court of Justice

The superior court of the Canadian territory of Nunavut, having general jurisdiction over all legal matters in the territory.

Sentencing Circles

Meetings to suggest sentences in cases involving Aboriginal offenders and victims.

Mental Health Courts

Specialized court docket programs aimed at addressing the needs of defendants with mental health conditions.