Consider the short- and long-run cost curves for a firm. If there is an improvement in the firm's technology, ... a. There will be a downward shift in the long-run average cost curve but not in the short-run average cost curve. b. Both the long- and short-run average cost curves will shift downward. c. The firm will move to a lower point on both its long- and short-run average cost curves. d. The firm will move to a lower point on its long-run average cost curve only. e. There will be no change in the cost curves in the long run.

Q: 1. Explain the difference between an implicit cost and an explicit cost, and how both costs relate…

A: 1.  Implicit cost is the cost that has already occurred in the past. However, these are not direct…

Q: 14. Explain which of the following is a fixed cost or a variable cost for Southwest Airlines. a. The…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Use the following table to answer the questions that follow. Total Output    Cost      TFC…

A: Total​ output Costs TFC TVC AFC AVC ATC MC 0 20 20 0 - - - - 10…

Q: What are the kinds of cost which firm face in short run. Explain theoretically and graphically the…

A: Cost is the money that is used to produce goods and services.

Q: 2. The following table depicted a computer manufacturer's total cost of producing computer: Quantity…

A: In its most basic form, total cost (TC) refers to all of the costs associated with producing…

Q: The "Sad Student" Company finds that it costs a total of C(q) = 9720 +500g -1.5q +0.005g Dollars to…

A: Total cost is the sum of fixed and variable cost of production.

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: $5,000 per month. Variable cost at the current evel of output of 100 tables per month is $10,0 Which…

A: A variable cost is a corporate expense that changes in proportion to how much a company produces or…

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A: The total sum that a producer must pay to create all of their goods and services is referred to as…

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

A: To produce 100 bikes using 1 factory, short run average cost is $360.

Q: Healthy Harry’s Juice Bar has the following cost schedules: Q VARIABLE COST TOTAL COST 0 0 30 1 10…

A: A cost curve is the locus of all points representing the cost incurred in the production of a…

Q: 4. Various measures of cost Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The…

A: The given table can be completed by using the following formulas.

Q: Price SRAC1 100 SRAC2 200 300 SRAC3 400 LRAC Output In the long run, which plant size should be used…

A: The LRAC curve shows the lowest long-run average cost of production that a company can achieve with…

Q: 3. With the aid of a graph, explain why marginal costs will necessarily intersect average total cost…

A: Marginal costs refer to the additional cost incurred by producing one more unit of a product or…

Q: * 25 20 15 LRAC 10 5 10 15 20 25 30 Quantity (units per hour) Cost (dollars per unit)

A: Economies of scale occurs when LRAC decreases as quantity increases Diseconomies of scale occur when…

Q: Which one of the following statements about a firm’s cost curves is true? A. The average variable…

A: The explicit cost refers to the cost expressed in monetary terms. The implicit are not directly…

Q: A. A firm’s fixed costs for 0 units of output and its average total cost of producing different…

A: A. Fixed costs are those costs which a company has to incur irrespective of any business activity…

Q: e graph below illustrates a series of short-run average cost curves, numbered AC1 through AC5, which…

A: Economies of scale occurs when long run average cost falls as more output is produced. Long run…

Q: 25 es A firm's long run total costs are given in the table below. Instructions: Round your answers…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you.…

Q: 4. If the 15th unit of output has a marginal cost of $29.50 and the average cost of producing 14…

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

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: Give an example of a fixed cost and a variable cost.

A: Variable and Fixed costs in economics are those two types of costs that a firm incurs during the…

Q: © Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If…

A: The average total cost refers to the approximate total cost of production a firm incurs at different…

Q: 3. Jane's Juice Bar has the following cost schedules: Variable Cost $0 Total Cost Quantity 0 vats of…

A: Given,

Q: Quantity Variable cost Total cost 0 vats of juice $0 $30 1 10 40 12 55 3 75 14 100 5 130 16 165 10 1…

A: Average cost The average cost is the price per unit produced during a production run. It denotes…

Q: 127 Instructions: Enter your answers as a whole number. a. Calculate marginal cost using the formula…

A: Marginal cost is the change in the total cost due to the change in the quantity. MC = dTC /dQ  here…

Q: SRATC or small plant SRATC tor medium plant SRATC for arge plant LRATC S500 Diseconomies of Scale…

A: Costs in the long run are determined by the firm's level of output, factor costs, and the quantities…

Q: a. Calculate marginal cost using the formula given in the chapter: ATotal cost/AQuantity. Quantity…

A: Ans. ) Given the question, the task is to find the marginal cost, and (change in variable cost /…

Q: a. Why is the gap or difference between average total cost and average variable cost larger at…

A: Cost is a metric of the possibilities foregone when one product or task is chosen over another.

Q: How would each of the following affect average total cost, average variable cost, and marginal cost?…

A: GIVEN  How would each of the following affect average total cost, average variable cost, and…

Q: Jane’s Juice Bar has the following cost schedules:a. Calculate average variable cost, average total…

A: The fixed cost is the cost that is associated with the fixed factors of production (factors that…

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.