Draw the MC and the ATC curves and show graphically: (a) The long-run optimal production and price level. (b) The economic profits when p >Min(AT C). (c) The economic profits when p

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 the MC and AVC curves and show graphically: (a) Shut-down price. (b) Short-run supply curve.…

A: The marginal cost refers to the additional cost incurred by a firm on producing an additional unit…

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: Why does the difference between AVC and ATC get smaller as Q increases? b)  Why does MC intersect…

A: Since you have asked multiple questions we will answer the first three for you. The average cost…

Q: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

A: Here input increase 4× and output increase 6×

Q: Draw the short-run average total cost (ATC), average variable cost (AVC), and marginal cost (MC)…

A: Average total Cost is the total cost per unit of output. Average Variable Cost is the variable cost…

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: 1/3 1/3 2. Earl sells lemonade in a competitive market on a busy street corner in Philadelphia. His…

A: Production function is the mathematical expression in economics that postulates the relationship…

Q: Match the descriptions below to the appropriate concept: A. Diseconomies of Scale B. Economies of…

A: Economies of scale is dependent on the average total cost.  The efficient scale is where the average…

Q: If a firm quadruples (4x) in size and output triples(3x), what is the returns to scale?  a.…

A: The markets are the place where the buyers, and the sellers of the goods, services, and other…

Q: (a) Suppose we have the following production function: Q = K²/³12/3. Does the technology have…

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

Q: The law of diminishing marginal returns _____.   a) is relevant in the short run. b) assumes all…

A: In economics, the expression "returns" alludes to the output produced contrasted with the inputs…

Q: The total cost equation for producing X widgets is given by TC = $1,000 + $6X. The marginal cost per…

A: Given data: Total cost function TC=$1000+$6X Quantity X=3000 units

Q: State the relationship between average variable cost (AVC), and marginal cost (MC) when AVC is…

A: 1. AVC (Average variable cost) is decreasing, when the MC (Marginal cost) is less than AVC (Average…

Q: A firm’s marginal product will be at a maximum at which of the following levels of output?…

A: To determine the level of output at which a firm's marginal product will be at a maximum.

Q: A  large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of…

A: Diseconomies of scale occur when a business grows so large that the costs per unit increase. It…

Q: 38. Which of the following could have caused a shift of the Aggregate Expenditures curve from AE1 to…

A: Monetary policy is done to control and manage the amount of money in circulation and interest rates…

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

A: Answer to the question is as :

Q: Define economics of scale and explain they might arise. Define diseconomies of scale and explain why…

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

Q: Note: Plot your points in the order in which you would like them connected. Line segments will…

A: Approach to solving the question: The value for the short-run average total cost can be identified…

Q: A firm faces the production function: q=10L^0.32 K^0.56  (a) What kind of returns to scale does…

A:

Q: Continue analyzing the production for a firm.  Use the Total Variable Costs calculated in the…

A: Production is the process of creating goods or services. It involves the use of inputs, such as raw…

Q: 1) Use the graph to answer the question. Between points C and D, the long-run average total cost…

A: As per the guidelines answer is given to the first question. (1) "Long run average total cost curve…

Q: a large-scale producer selling a wide range of soft drinks. (a) Outline and explain the sources of…

A: Diseconomies of scale occur when a business grows so large that the costs per unit increase. It…

Q: How does the impact of fixed costs change production decisions in the short run and in the long run?…

A: Fixed cost refers to the cost which remains the same at each level of output. It means that fixed…

Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: Refer to the above diagram. Diseconomies of scale?

A: Diseconomies of scale or decreasing returns to scale is the situation of increasing total cost…

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.