Consider the following table of long-run average total costs for a firm. Does the firm experiences economies of scale , diseconomies of scale, constant return to scale or all of those? How do you know? Explain your answer. Quantity 8 10 11 12 LRATC 220 200 200 210 250

Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: Introduction: Marginal cost: the marginal cost refers to the additional cost that is used to produce…

Q: With a total cost function of: TC = 50 + 2Q +2Q², where Q is the output quantity, solve for the…

A: Total cost TC = 50 + 2Q + 2Q2 Fixed cost Fixed cost is that part of TC which does not depends on…

Q: Draw an isoquant-isocost diagram consistent with points A and B on the long-run average cost curve…

A:

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? PLEASE…

A: Economies of scale means reducing production cost by increasing output at a large scale.

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: Explain the relation between average variable cost and marginal cost for both the short-run and…

A: Cost Curves show the relation between the costs that a firm incur in the process of production and…

Q: In The Cost Graph for a typical firm, as quantity increases, what is the relationship between…

A: The visual depiction of the relationship between the cost of production and the quantity of goods or…

Q: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

Q: Does a relationship exist between increasing returns to scale and long-run average cost? Ex with the…

A: Economies of scale or increasing returns to scale are utilized conversely; both implies to a fall in…

Q: If a firm's average total costs decrease as it increases its scale of production, the firm is…

A: Economies of scale is when the increasing production decreases the average total cost.  Diseconomies…

Q: How do costs vary in response to changes in the quantity of a variable input? In your own words. 250…

A: In economics, the concept of costs and their relationship with the quantity of a variable input is…

Q: The fixed costs of a firm are $100. When the firm produces one unit the total cost is $150. The…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

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

A: Economies of scale refers to the concept used by the organization in which the organization increase…

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: What are economies and diseconomies of scale? How do they arise? What do they imply for the shape of…

A: Long run average cost is the lower cost for the production of every unit. It comprises several short…

Q: Explain economies of scale and how to determine if a firm is experiencing it or not from their cost…

A: In a market, economies of scale is considered as one of the competitive advantage of a firm.

Q: How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant,…

A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

Q: Explain the following statement by using a graphical analysis: “Shape of the short-run cost curves…

A: The shape of the short-run total cost (TC) curve is cubic and that of the average cost (AC) curve is…

Q: Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).

A: At the Mininum effiecient scale point, the company could achieve the economies of scale being…

Q: briefly explain returns to scale.  Explain the variable costs in the cost function

A: returns to scale allude to the rate by which result/output changes on the off chance that all…

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: What is the term for the change in total cost resulting from a one-unit increase in production?…

A: please find the answer below.

Q: Explain the following statement by using a graphical analysis: “The long-run average cost curve is…

A: Average cost is the cost of producing one unit of goods and services . It is calculated by dividing…

Q: Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…

A: The long-run average total cost curve declines because apparently, the firm becomes efficient in…

Q: A farm producing wheat has the following production function Q = 4L + 3K. Does the above function…

A: Given, Q=4L+3K Production function shows the technical association between the input and output. It…

Q: Distinguish between economies of scale and constant returns to scale. What shape will the long-run…

A: Economies of scale – A downward sloping LARC (Long run average cost curve)The constant return to…

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.