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: Explain the differences between diminishing marginal returns and diseconomies of scale.

A: Since the marginal return can be defined as the additional return by purchasing an additional…

Q: Suppose the total cost function of a firm is given as: TC = 720 - 45Q + 20². Determine the average…

A: Total cost of production is the summation of fixed cost and variable cost . It is the monetary value…

Q: Suppose you are a producer of motor vehicles, explain with the use of examples the difference…

A: Economies of scale exist when since a long time ago run normal total expense diminishes as yield…

Q: Imagine a firm faces a short run function of C(q) = 0.66687q^3 - q^2 +6q +367.23 and a short run…

A: Average variable cost is the variable cost per unit incurred in the production. It is the part of…

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

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

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

Q: What does the Long Run Average Cost (LRAC) curve imply when it is horizontal? There are diseconomies…

A: Answer - Need to find- What does the long run Average cost curve imply when it is horizontal…

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: Explain why this curve has the shape that it does. Be specific and provide examples in your…

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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: For a firm, what does the production function represent? the concept of diminishing marginal product…

A: The concept of diminishing marginal product states that as the number of workers increases the…

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: Quantity Total Fixed Cost 0. 60 60 60 115 4 60 130 6. 60 160 8. 60 200 10 60 250 Using the above…

A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…

Q: Use the graph below to answer the following question. 10 8 Long Run Average Total Costs

A: The long run average total cost curve (LRATC) shows the per unit total cost incurred by the firm in…

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: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

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

A: Economies of scale refers to one of the competitive advantages that allow a firm to capture most of…

Q: Q1. If fixed cost (FC) is $50, variable cost (VC) is $100, and output (quantity) is 3, what is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Economics students often confuse (a) diminishing returns related to the variable factors of…

A: The return to scale and economies of scale are two different concepts.  The law of diminishing…

Q: Suppose that Hyundai increases the amount of capital, labor, and other inputs it uses by 10% and as…

A: When product is manufactured and put into production process, cost  takes place and process of…

Q: Consider the following graph: Average Total Cost (S) ATCA ATC ATCC ATC₂ Q3 At which points does the…

A: In economics, economies of scale is a concept that helps to understand the nature of a firm and its…

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.