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
The concept of Diminishing/Decreasing Marginal Returns is one of the core economic principles, and is a fundamental reason why small businesses stay small. What is an INCORRECT explanation of this principle. Small businesses eventually operate at full capacity, and the return on additional investment is zero/negative O Total returns are higher when investment small. Beyond a certain amount of investment, the value generated by each unit of additional investment is near-zero Returns per additional unit of investment are higher at low levels of investment O
Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Suppose the firm is currently producing 160 units at an average cost of $90 per unit. Which of the following statements is true? $/unit 200 175 150 90 80 R 50 50 O ACI AC2 X 160 130 AC3 Output Figure 8.6 The firm could reduce its short-run average cost by producing less output. The firm is producing the level of output that minimizes short-run average cost. The firm is producing its output at the lowest possible long-run average cost. The firm could reduce its short-run average cost by producing more output.
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We classify Three Possible Long-Run Average Cost Curves for a Multiplant Firm; given the following three cost curves/ quantity …classify the type of those long run average cost
Is each of the following statements true or false? In either case, briefly justify your answer. (a) If a firm has economies of scale, then its average cost is decreasing and lower than its marginal cost. (b) A firm whose total cost function is C(Q)=Q^2+Q must have economies of scale. (c) A firm with total cost function ?(Q) = 3Q+2 must have constant returns to scale. Plz do fast asap
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.
If a firm decides to produce no output in the short term, which of the following costs will be zero: O Variable cost O Total cost Fixed cost O Capital Cost