Diseconomies of scale occur when:A) average total cost increases as output increases.B) average total cost declines as output increases.C) average fixed cost declines as output increases.D) average fixed cost increases as output increases.

Q: Which of the following statements is TRUE? O The average variable cost curve must always be…

A: The addition of fixed and Variable Cost gives us total costs, which when divided by the output give…

Q: This is a graph of our firm’s costs. Label the lines on the graph using the following labels:…

A: Cost of production is those costs which are incurred by the manufacturer for manufacturing the…

Q: Economies to scale refer to

A: Companies benefit from economies of scale as manufacturing gets more efficient.Economies of scale…

Q: The average cost (AC) function is . 24/q-15+3q a) Find an expression for total cost (TC) function.…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

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: You are given the following long-run cost function: TC = 150Q - 20Q2 + 1.8Q3 What level of Q will…

A: Economies of scale is where slope of long run average cost <0, while disceconomies of scale comes…

Q: If average fixed cost is $30  Calculate total fixed cost if output is 30 units

A: According to the above question, the values given are:- Average fixed cost = $30 Output = 30 units…

Q: What is the relationship between average variable cost and total variable cost? a) They are always…

A: To understand the connection between average variable cost (AVC) and total variable cost (TVC), it's…

Q: If production happens when MC-ATC, then average variable cost is minimized. marginal cost is…

A: Marginal cost (MC): When there is addition to total cost because of the production of one more unit…

Q: Diseconomies of scale exists over the range of output for which the long run average cost curve is?

A: Diseconomies of scale exists over the range of output for which the long run average cost curve is…

Q: Increases in long-run average cost that occur as output increases is the law of diminishing marginal…

A: Understanding the relationship between output and cost is crucial for businesses to make informed…

Q: cost curve creases, does not shift; shifts upward shifts upward; shifts upward shifts upward; does…

A: Cost refers to all the expenses that incur in the process of production of goods or services. There…

Q: If producing more output increases average cost then         a)there are diseconomies of scale.…

A: Answer to the question is as :

Q: In the short run, if average variable cost equals $50, average total cost equals $75, and output…

A: The total fixed cost refers to those costs that remain the same regardless of the level of…

Q: Explain the general shape of the long run cost curves in relation to economies and diseconomies of…

A: The shape of long run cost curve changes depending on the returns to scale.

Q: Which of the following statements regarding average fixed costs is correct? Select one : A) They…

A: The fixed cost is the short-run concept. In the short run, factors of production like land, capital,…

Q: Find the cost function for the marginal cost and fixed cost. C = Marginal Cost Fixed Cost (x = 0) dC…

A: The marginal cost function is given below:The fixed cost of production (at x =0),  is…

Q: You are given the following long-run cost function: TC = 200Q - 25Q2 + 1.5Q3 What level of Q will…

A: Here the firm's total cost=TC = 200Q - 25Q2 + 1.5Q3 here the total fixed cost-TFC=0 (since this is a…

Q: Let the production function be F(K,L) = sqrt(KL) Find the minimum cost for the long run

A: The production function shows the relationship between inputs and output. The rise in inputs causes…

Q: The portion of a long run average cost curve that is downward sloping is called the range of: Group…

A: The long-run average cost curve is the cost curve which helps to analyze the cost function of the…

Q: Compare and contrast: a) Average fixed cost vs. Total fixed cost b) Total variable cost vs. Average…

A: Differentiate between Average fixed cost and Total fixed cost:- Average fixed cost Total fixed…

Q: A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost…

A: The objective of the question is to calculate the total variable cost (TVC) of the bag factory given…

Q: Minimum efficient scale for production of a good or service: Select correct one : a) is the point…

A: Answer: option c (is the rate of output at which long-run average costs reach a minimum)…

Q: Average total cost decreases when marginal cost is average tot. less than greater than equal to

A: Average cost(AC) is the division of total cost(TC) by the total quantity produced. It is the…

Q: What is the relationship between average variable cost and marginal cost? a) They are always equal…

A: Prior to diving into the connection between average variable cost (AVC) and marginal cost (MC), it's…

Q: Total variable cost is $40 and total fixed cost is half of it.  Find total cost

A: According to the above mentioned question, the values are:- Total variable cost = $40 million Total…

Q: Diminishing returns A cost function of the form C(x) = 1/2 x2reflects diminishing returns to scale.…

A: According to the question, C(x) = ½ X^2 AV(x) = C(x)/x           = ½ x MC(x) = C’(x)             =x

Q: If average total cost decreases as output increase, this indictes that there are

A: In the long run, If the average total cost decreases as output increases, this indicates that there…

Q: The downward-sloping segment of the long-run average cost curve corresponds to *…

A: In production activity, time period under consideration determines the nature of costs faced by the…

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: Total Cost = C(x) = 0,005x^3 - 0,49x Lnx +5x Find : a. Average Cost Function b. Average Cost…

A: Average cost (AC) = C(x) / x AC = 0.005x2 - 0.49 Lnx + 5

Q: Marginal cost can be calculated both from total cost and total variable cost and is not affected by…

A: According to the given question The marginal cost is basically or initially considered as the slope…

Q: Marginal cost is defined as the change in total cost when: a) Total fixed cost increases b) Total…

A: Marginal cost is a major idea in financial matters and business, especially with regards to creation…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

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.