Chapter 22 - Assignment 3: Economies of Scale on Dairy Farms
Chapter 22 - Assignment 3: Economies of Scale on Dairy Farms
Read Timothy J. Richards' article on "Positioning Your Dairy Farm Business for a Profitable Future - A Western Canadian Perspective".
- Use Table 1 to compute an average fixed cost schedule.
- Use Table 1 to compute a marginal cost schedule.
- List the major reasons for the existence of economies of scale in dairy farms.
- How has the development of automated milking equipment affected the shape of the long-run average cost curve? Is it likely that this innovation has raised the minimum efficient scale in this industry? Explain.
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