4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In the range of outputs from B to C. OC. At point B only. OD. At point A only E. In the range of outputs from A to C. OF. At point C only. Long Run Average Costs B Output LRAC C

4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. OB. In the range of outputs from B to C. OC. At point B only. OD. At point A only E. In the range of outputs from A to C. OF. At point C only. Long Run Average Costs B Output LRAC C

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Tolal Fbed Total Varlable Cost Tatal Total Cost Cost Variable Cost Flved Cost Product Cast 60 00 45…

A: FIXED cost is independent of output produced thus the required fixed cost is $ 60 whereas variable…

Q: j. What is happening to average total costs when they equal marginal costs? k. Marginal costs equal…

A: The table including the variable input, total product, price of input and Total Fixed cost is given…

Q: In the long run, Select one: a. some resources are variable and some resources are fixed. b. all…

A: In economics, a firm's analysis is typically conducted from both a short- and long-run perspective.…

Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

A: Economies of scale: Economies of scale are the cost advantage happens due to increase in…

Q: Solve the attachment.

A: Marginal cost is the addition to the total cost due to the production of an extra unit of output,…

Q: Long-run total cost (dollars) Quantity 20 100 40 160 60 180 80 190 The cost data in the above table…

A: Economies of scale are cost advantages that the company enjoys in the form of decrease in average…

Q: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: When marginal cost (MC) is falling, which of the following must be true? OA. Average variable cost…

A: Marginal cost refers to change in the total cost that arises by increasing output produced by 1…

Q: Predictions using the supply-and-demand model for electronic games are likely O A. not reliable…

A: Q1). Each electronic game available in the market has some specialty that makes them different from…

Q: Refer to the graph. For a certain output range (or quantity of pizzas produced per day), marginal…

A: Average total cost refers to the approximate total cost of production at different levels of…

Q: If a firm produces nothing, which of the following costs will be zero? Select one: O a. variable…

A: Total cost is the summation of total fixed cost and Total variable cost. Total fixed cost are those…

Q: Food Fanatics caters meals where its costof producing an extra meal is $25. Each ofits meals sells…

A: The firm will enhance its profit by employing more variable input to create more output as long as…

Q: 44)How does the average-fixed-cost curve behave? A. It declines as long as it is above marginal…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Economic costs of production differ from accounting costs in that Select one: a. economic costs…

A: There are many associated costs of production in the process of production. These costs can be of…

Q: Define Minimum Average Cost and Efficient Scale.

A: Minimum Average Cost :The average cost or average total cost is per unit cost incurred by the firm…

Q: 6. Fred found that fine flowers grow faster with fertilizer. In one month, Fred can harvest between…

A: Dear student, find a detailed answer and step by step solution in the explanation part…

Q: 11. The law of diminishing marginal returns: a. is relevant in both the short and the long-run. b.…

A: The "production function" depicts the relationship between the inputs used by a firm and the output…

Q: 10. Elegant Settings manufactures stainless steel cutlery. Quantity (sets) 100 200 300 400 500 Long…

A: Economies of scale refers to the cost advantages experienced by a firm when it increases its scale…

Q: III 123 Verdana 12 A A- Aa BIU abe X, x2 Styles 3. Complete the following table: See module 3 notes,…

A: Fixed cost is the cost that remains same at all levels of output while variable cost is the cost…

Q: Refer to the information provided in Table below to answer the question that follow. Number of…

A: The sum of all the variable costs incurred by a business in the production of goods or services is…

Question

4. On the graph, where do economies of scale exist?
A. In the range of outputs from A to B.
B. In the range of outputs from B to C.
OC. At point B only.
OD. At point A only.
OE. In the range of outputs from A to C.
OF At point C only.
Long Run Average Costs
B
Output
LRAC
C

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define economies of scale.

VIEW

Step 2: Choose the correct option.

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

QUESTION 1 When diseconomies of scale occur: CA. the long-run average total cost O B. marginal cost intersects average OC the long-run average total cost O D. average fixed costs curve falls total cost curve rises will rise
To economists, the main difference between the short run and the long run is that: the law of diminishing returns applies in the long run, but not in the short run.B. in the long run all resources are variable, while in the short run at least one resource is fixed.C. fixed costs are more important to decision making in the long run than they are in the short run.D. in the short run all resources are fixed, while in the long run all resources are variable.
What are diseconomies of scale? Diseconomies of scale is A. when the marginal product of labor is decreasing with output. B. when the marginal cost of production is increasingwith output. C. when a firm's long-run average costs decrease with output. D. when a firm's long-run average costs increase with output.
None
Average total cost is very high when a small amount of output is produced because Select one: a. average fixed cost is high. b. average variable cost is high. O c. marginal product is high. d. marginal cost is high.
u
True or false: a change in fixed costs will change marginal cost. a.True b.False
2b statements is true or false and explain If marginal cost is larger than average cost, average cost will fall as output increases.
f production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the aver ecimal places.) Output (q) VC C MC AFC AVC AC 1 $100 $64 112 $164 $64 48 $100.00 $64.00 $164.00 50.00 56 00 106.00 2 100 212 3. 100 144 244 32 33.33 48.00 4. 100 160 16 25.00 40.00 65.00 100 192 292 -32 20.00 58 40 9. 100 340 48 16.67 40.00 56.67 7. 100 -304 404 14.29 4343 57.71 100 -384 484 80 48.00 60.50 53.33 59.20 9. 100 480 580 96 11.11 64.44 10 100 592 112 10.00 F.
B. the rodu g one m Average Variable Cost C. fixed costs divided by output D. total cost divided by output v Marginal Cost QUESTION 5 20 points Save Answer Match each of the following terms and descriptions Constant returns to scale when the average cost of producing each individual unit A. declines as total output increases Diseconomies of scale average cost of producing each individual item increases as В. output increases economies of scale average cost of producing each individual unit remains C. constant as output increases Long Run Average Total Cost Curve the relationship between output and costs over the life of a D. business Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit ype here to search W 63°F Ca ) ENG 8:10 PM 10/18/2021 hp
5. True, false, or uncertain? Explain briefly but specifically. a. A cost function exhibits diseconomies of scale if the marginal cost rises as output decreases. b. Short run average cost is always at least as much as long run average cost.
4.The Marginal Cost Curve is shaped like a Nike swoosh. graph. 5.The Marginal Cost Curve crosses the Average Total Cost curve and Average Variable Cost curves at the lowest point. graph.