Question 4 [35] Tech World (Pty) Ltd is a manufacturer of security equipment. One of its

Required

4.1. Use the data provided in the table together with any other calculations you deem necessary in order to help Thabo to classify the capacity levels into the categories where Tech World will experience economies of scale, constant returns to scale and diseconomies of scale. Provide reasons for each of the classifications. (26)

4.2. Thabo also wants to know the range of outputs where the firm reaches the lowest feasible cost per unit. Identify for Thabo the minimum efficient scale and the maximum efficient scale output levels in the table. (9)

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