Answer the following Questions. Include referencing where additional sources have been used a. Why will firms in most markets be located at or close to the bottom of the long-run average cost curve?

Q: The curves below reflect information about the cost structure of a firm. Use the figure to answer…

A: In a market,  a firm's cost curves helps to analyze its production efficiency at different output…

Q: Imagine yourself running a pizza restaurant over a short term horizon. Think about the following…

A: The amount of all costs brought about by a firm in creating a specific degree of result.

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…

A: We have blank for MC at q=5.

Q: Distinguish between implicit and explicit costs and give examples of each. In addition, explain how…

A: Explicit Costs are those costs that are directly observed like the cost involved in hiring labor or…

Q: A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this…

A: The values are found out by: TC=TFC+TVCAC=AFC+AVCAFC=TFCQAVC=TVCQMCN=TCN-TCN-1

Q: Choose all answers that are correct:  the marginal cost is the slope of the... a. The variable cost…

A: Marginal cost = Change in total cost / Change in quantity of output

Q: Which of the following is true of fixed costs?   a. Fixed costs can be changed, but it is…

A: Fixed costs are those that do not change with changes in the output level produced. They are the…

Q: A firm with only fixed costs will have which of the following average cost relationships? As…

A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…

Q: What factors affect the cost of production in the long-run? Pick all that apply Multiple answers:…

A: The inputs such as capital, labour and land are used to produce and output in the market is known as…

Q: The marginal cost curve intersects the average total cost curve at the level of output where average…

A: Marginal Cost (MC): Marginal cost occurs when producing an extra unit of output. Average total cost…

Q: Table 1 below describes the costs associated with producing a good (Q). Use it to answer the…

A: The objective of the question is to determine the fixed costs of production from the given table.…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Define fixed and variable costs of production. Why do you think bigger firms may have lower average…

A: Answer: Fixed cost: it refers to the cost that is constant in the short run and it does not change…

Q: QUESTION 4 Match each of the following terms and descriptions Average Fixed Cost Average Total Cost…

A: Providinf full. Solution.

Q: If there are diseconomies of scale within a given range of output, which of following is(are) TRUE?…

A: Diseconomies of scale are the cost disadvantages that occur when firms increase their scale of…

Q: Evaluate the view that the main goal of firms will always be cost minimization.  You are interested…

A: 1) The main goal of the firm is cost minimization. This is because if the firm minimises the cost,…

Q: Distinguish between explicit and implicit costs, giving examples of each. Why does the economist…

A: Externalities: It occurs in the economy when the production of goods and services and the…

Q: A firm analyzes the effects of raising its current level of output and finds that doing so will…

A: The firm average total cost increases if the firm increases its current level of output. The average…

Q: Define explicit costs and implicit costs.      b. Assume the following: * A firm buys a unit of…

A: Explicit cost is the cost that is incurred for paying external expenses like wages to employees,…

Q: How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the…

A: Cost refers to the financial valuation of products and services purchased by manufacturers and…

Q: Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and…

A: Implicit Cost: Implicit cost is due to the factors which are entrepreneur himself owns and employs…

Q: Word Bank Matching (Use the drop-down for each question. No words in the word bank are repeated in…

A: Explicit Cost: Explicit costs are tangible, measurable expenses incurred by a firm that involves…

Q: When examining the costs faced by a business, explain how economists distinguish between the short…

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

Q: Q50 The point of tangency between the short-run average total cost (SRATC) curve and the long-run…

A: Answer: The long-run average total cost curve is tangent to the minimum points of the short-run…

Q: a. Complete the following schedule, if the fixed cost = BD 700. (Note: you will receive full marks…

A: Here, output and total cost is given with the fixed cost of BD 700 and the formulas related to other…

Q: Read Chapter 13 and fill in the grid below. Also add a column to the grid -to the "right" of Average…

A: The table can be filled as follows:

Q: 4. A firm has production function q = KL. The wage and rental rates are both 10. Does this…

A: The production function is a concept in economics that describes the relationship between inputs and…

Q: 1) Use the graph to answer the question. Between points C and D, the long-run average total cost…

A: As per the guidelines answer is given to the first question. (1) "Long run average total cost curve…

Q: What are fixed costs?  What are variable costs?

A: Hi student, As per the guideline we are providing answer for one question. Since you are requested…

Q: Accountants and Economists differ in their calculations of profits in that; Select one: a.…

A: Opportunity cost refers to the cost of a foregone opportunity. The cost involved when an opportunity…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: Use the following statements to answer this question: 1. The long-run average cost (LAC) curve is…

A: Long run average shows the relationship between Average total cost and output in the long run. In…

Q: This chapter discusses many types of costs: explicit costs, implicit costs, total cost, average…

A: The questions given are based on different types of cost and are quite self explanatory.

Q: a. Define explicit costs and implicit costs.   b. Assume the following: * A firm buys a unit of…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: The fllowing Table describes the costs of production for a local firm Quantity vc TC APC AVC ATC MC…

A: Recall the following concepts:  Variable Cost (VC): Costs which increase with increase in quantity…

Q: Using the numbers representing short run costs in the chart below, calculate the number that belongs…

A: Total fixed cost is the addition of fixed cost and variable cost. Fixed cost is cost which remains…

Q: Explain what is the relationship between marginal cost and average total costs for a firm or…

A: The monetary value of all the resources used to make a product, according to economic theory,…