Consider the following table: Quantity 0 1 2 3 4 5 6 7 8 9 0 10 TC TFC TVC ATC 20 6 or 7 1 or 2 7 or 8 8 or 9 53 63 29 AFC AVC MC 8 6.5 25 2 3 15 20 At what level of output does the firm going from economies of scale to diseconomies of scale?

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.