ased on your own personal observations of the college, do you think the low-income Community College is experiencing economies of scale, diseconomies of scale, or constant returns to scale? Make certain to explain your answe

Q: Complete the following table and answer the short discussion question. Average Cost (AC) Average…

A: In economics, TFC is the cost incurred when the output production is zero; therefore, here, TFC is…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: An entrepreneur invests $10,000 of her personal savings in her new business venture. Furthermore,…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Q: How is the difference between average total cost and average variable cost impacted by an increase…

A: Average total cost is the total cost per unit whereas average variable cost is the total variable…

Q: In your own words, state and briefly explain two reasons that lead to economies of scale.…

A: Economies and Diseconomies of scale occur over the long run when all inputs are variables. These…

Q: If Boeing produces 9 jets per month, its long-run total cost is $9.0 million per month. If it…

A: Economics of scale: It refers to the situation when increasing production leads to falling per unit…

Q: Adam operates a factory that produces beach towels. His current level of output equals 2000 towels…

A: Fixed costs incorporate quite a few costs, including rental rent installments, compensations,…

Q: Given the following production cost function: TC=5+29 R1 R² +0.5 R³ TC: total cost in '00 (hundreds)…

A: Production costs are the costs a company incurs while creating a something or providing a service…

Q: You overheard Mr. John, the newly hired marketing manager, saying: “I think our company should take…

A: We are briefly discussing the economies of scale phenomenon to answer this question.

Q: ing to the long-run average cost cur

A: The cost of per unit output is known as the average cost. It directly depends on returns which…

Q: A computer company produces hardware and software using the same plant and labor. The total cost of…

A: Economies of scope occur when producing multiple products together reduces the total cost, as shared…

Q: Average cost decrease indefinitely as output expands.   Is that true?

A: Economies of scale signifies a scenario where a firm reaps the cost benefits while carrying out…

Q: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale refer to the cost advantages that are derived from the expansion of the scale of…

Q: Does this production function exhibit constant returns to scale? Using the marginal products you…

A: To evaluate if the production function displays consistent returns to scale, we must first see if…

Q: Distinguish between the short-run and long-run production decisions and illustrate their impact on…

A: Meaning of Production Function: The term production function refers to the situation under when a…

Q: Suppose the production function is q = 18L0.55K0.75. Determine the long-run capital-to-labor ratio…

A: Cost is minimized at a level where slope of marginal products is equal to slope of price ratio of…

Q: A firm's production function is given by y(K, L) = 2√(KL) or 2(KL).5 (2 times the square root of the…

A: The Marginal Product of Labor (MPL) represents the change in output resulting from employing an…

Q: there C is total cost, F is fixed cost, c is a constant and ost, and average cost? Over what range…

A: Given information; C(q) = F + cq Where C is the total cost, F is fixed cost, c is constant, and q is…

Q: Does the production function y=0.8x_1x_2 exhibit constant returns to scale, increasing returns to…

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

Q: Use economies of scale to link a firm’s size and its average costs in the long run.

A: Economies of scale refers to a situation when the average cost of production falls with higher level…

Q: Which of the following production functions exhibits constant return to scale?

A: The production function exhibits constant returns to scale when there is a proportionate change in…

Q: Which cost concept is used to determine the most cost-efficient level of production? a) Average cost…

A: Prior to jumping into the particular cost concept used to decide the most cost-effective degree of…