5. When fewer firms are better Fresh Breath Enterprises (FBE) is a well-known manufacturer of mouthwash. Its main facility is a mint-processing plant, which is currently operating at only 60% capacity. FBE is considering the introduction of a line of mint chewing gum that would use the same mint-processing plant as part of its production process. This proposed production scenario is an example of: O Constant returns to scale Economies of scope O Decreasing returns to scale O Increasing returns to scale

5. When fewer firms are better Fresh Breath Enterprises (FBE) is a well-known manufacturer of mouthwash. Its main facility is a mint-processing plant, which is currently operating at only 60% capacity. FBE is considering the introduction of a line of mint chewing gum that would use the same mint-processing plant as part of its production process. This proposed production scenario is an example of: O Constant returns to scale Economies of scope O Decreasing returns to scale O Increasing returns to scale

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to Figure 13-7. When does the firm experience diseconomies of scale? a. if it changes its level of output from Q1 to Q2 b. if it changes its level of output from Q2 to Q3 c. if it changes its level of output from Q3 to Q4 d. if it changes its level of output from Q4 to Q5
2. A firm has a production function given by the following table: Units of Labor 1 2 3 4 5 K=1 3 8 12 15 17 K=2 10 15 19 22 24 K=3 16 21 25 28 30 K=4 20 25 28 30 31 (1) Suppose that K is fixed at 2. Does this production function exhibit diminishing marginal returns? (ii) Does this production function exhibit constant returns to scale for all values of K and L?
Question 9 □ Which of the following best explains why adding more of a variable input will eventually lead to smaller increases in output in the short run? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C d Owners will run out of good variable inputs to use. There will be less of the fixed input per variable input as more of a variable input is used. There will be less of the fixed input as more of the variable input is used. The amount of the variable input will decrease as more of it is used.
Give me correct answer with proper calculation and graph otherwise i give multiple downvote and complain to bartelby Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
6. If a firm's ATC is falling in the long run, then a. it is subject to economies of scale over that range of output b. it is subject to diseconomies of scale over that range of output c. it is subject to constant return to scale over that range of output d. it has reached the minimum efficient scale of production e. both it is subject to constant return to scale over that range of output and it has reached the minimum efficient scale of production are true
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6. Which one of the following production functions represents an increasing returns to scale technology, where e is labour and k is capital? a) F(£,k) = e1/2 + k1/2. b) G(2,k) = {2/3k^/2. c) H(e,k) = min{{, 2k} d) I(e, k) = 3l + 2k.
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If a firm experiences economies of scale over all relevantlevels of output, its long-run average total cost curve will: O slope downward O slope upward. be vertical O be horizontal.
4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production Function Q=K¹/³L2/3 Currently K = 4 and L = 4. Suppose Jake doubles inputs to K=8 and L=8, as a result of this increase in input use a. Jake realizes constant returns to scale. b. Jake realizes increasing returns to scale c. Jake suffers decreasing returns to scale d. Jake realizes he is operating at minimum efficient scale
Which of the following is an example of a situation in which a firm is realizing economies of scale? O A hospital substitutes lower cost certified nursing assistants to perform some tasks previously performed by nurses allowing them to reduce the number of nurses on most shifts. A clinic substitutes digital scales with a laser height measuring feature negating the need for a nurse to take the actual height and weight readings for each patient. A hospital contracts with an outside maintenance company to do cleaning at a lower cost than using hospital employees A manufacturing firm adds a second shift to its existing factory and machinery.
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