c. If all prices (input and output) double, then costs will increase by more than dout d. If a firm doubles its use of all inputs while using an increasing returns to scale technology, then its profits will exactly double.

Q: Explain the influence of costs in the short run on a firm's output

A: Short-run is a period of time when there is some cost which cannot be varied.

Q: When there are positive fixed costs, can the average variable cost curve and average total cost…

A: We have 3 different costs, ATC, AVC and AFC where ATC is the sum of AVC and AFC. Given that are…

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

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: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: For a firm, constant returns to scale occur when the for the firm AFC ATC MC as the quantity…

A: ATC, or average total cost, is a term used in economics and business. It's a statistic used to…

Q: Why can the distinction between fixed costs and variable costs be made in the short run?

A: Understanding the difference between fixed costs and variable costs is important for settling on…

Q: the short run, a firm's average variable cost will increase as its output increases because

A: The variable cost refers to the cost which changes with change in the level of output.  AVC = TVC/Q.

Q: if marginal cost is rising with increasing output, averags cost must also be rising. true or false ?…

A: False. This sentence contains the statement that average cost of production must also rise if…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: PProblem 3-Page (174): The following table gives you information on the total cost of Mac's ice…

A: Average total cost is alluded to as the entirety of all production costs divided by the total…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: The term total cost refers to the sum of all the costs that are used in the production of a…

Q: Use the following table and use your previous calculations at what quantity of output does marginal…

A: Total cost is the sum of total fixed cost and total variable cost. Marginal cost is the addition to…

Q: Graph the Average Total Costs, Average Variable Costs, and Marginal Costs on the same graph.

A: Average total cost is total cost divided by quantity.  ATC = TC / Q ------------------- Average…

Q: Can total cost of the firm be zero? if yes what's the production point at this level

A: Total cost of the firm is the combination of fixed cost of the firm such as rent of the workplace…

Q: Suppose that a firm has increasing marginal cost, and a positive fixed cost. What happens to minimum…

A: Marginal costing is a functional analysis procedure that often helps management in making…

Q: 2. Consider a perfectly competitive industry where each firm has the cost structure described above.…

A: For a firm in perfect competition, the supply curve is given by Price = Marginal Cost  So we plot…

Q: Suppose that the Acme Gumball Company has a fixed proportions production function that requires it…

A: Part 1: Answera. The cost per hour of producing 1,000 gumballs is represented by the equation 2v +…