5. Economies of scale occur when a. the long run total cost is decreasing b. the long run total cost is increasing at a decreasing rate c. the marginal cost is increasing d. the long run AC is increasing e. the long run AC is decreasing

Q: What are economies of scale? Give an example. What are the diseconomies of scale? Give an example.

A: Production cost includes all the direct and indirect costs. With the increase in the firms, the…

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A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: At 7 units of output, average fixed cost is and average approximately___ variable cost is…

A: Average Variable Cost: AVC refers to the average of the variable costs incurred by the companies…

Q: Distinguish between/ among a.  The short run total fixed cost, total variable cost and total cost…

A: Cost refers to the value of the resource(s) that gets exhausted in the process of production or…

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A: Microeconomics is a part studied under economics that is used to understand the demand and supply…

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A:

Q: 1. The structure of costs in the short run . Take an example 2. The structure of costs in the long…

A: Hi! Thankyou for the question but as per the guidelines, we only answer one question at a time.…

Q: 8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs ar a.…

A: Given that, Output (Q) = 400units Total cost = $1,200 Total variable cost = $1,000

Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

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…

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A: Marginal cost and average cost are derived from the Total cost there is a relationship between the…

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A: We have given a table in which variable cost (TVC) is mentioned and the total fixed cost is 70 We…

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…

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A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

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A: The average total cost is the per unit cost of production. The ATC = TC/Q. The Total cost includes…

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A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…

Q: a. Complete the following cost schedule by computing marginal cost, average fixed cost, average…

A: a. we will calculate the values in the table: Output TC ($) TFC ($) TVC ($) MC ($) AFC ($) AVC ($)…

Q: 1. Individual Problems 3-7 A business incurs the following costs: • Labor: $195/unit • Materials:…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

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A: In the LR, the costs depend on the output level, the factor cost, and the factor's quantity which is…

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: 800 Is 720 640 SRATC, 560 480 SRATC, 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700…

A:

Q: Output Total Cost 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. The…

A: total cost measures the cost incurred in order to produce an output. TC=TFC+TVC

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A: Marginal cost is the cost of producing and additional unit of good.  Average cost is the per unit of…

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A: Diminishing Marginal product means that the increase in the output from the additional labor…

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A: First part The contrast between the short and long runs is critical in economics. It turns out that…

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A: Return to scale is a long-run concept that states the proportional change in output due to a…

Q: 2. Derive the long run average total cost curve and show minimum efficient scale on it.

A: Total Cost curve(TC) is the cost that is incurred in the production of goods in firms. It consists…

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A: What statement is not true.

Q: Give an example of a fixed cost and a variable cost.

A: Variable and Fixed costs in economics are those two types of costs that a firm incurs during the…

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A: Quantity (Q)Variable Cost (VC)Average Fixed Cost (AFC = FC/Q)Average Variable Cost (AVC)Average…

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A: Total cost(TC) is the sum of variable cost(TVC) and the fixed cost(TFC). TC= TVC+TFCAverage total…

Q: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

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A: Returns to scale is about the relationship between input and output. It refers to the amount of…

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A: The average total cost (AC) is the per unit cost of production of the firm. The long run average…

Q: Designated cost incurred by the short-run firm. Select one: a. fixed cost b. total cost c. variable…

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Q: What are diseconomies of​ scale? Diseconomies of scale is   A. when the marginal product of labor is…

A: Answer: Correct option: option D Explanation: Diseconomies of scale: when an increase in a firm’s…

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.