Q: How is the difference between average total cost and average variable cost impacted by an increase…
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Q: If the marginal cost MC = 5+4Q , and the fixed cost is 4, what is the total cost function?
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A: Economies of scale refers to the reduction in the average total cost of production which is secured…
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A: Given: Suppose the hospital provides care for Patients: 15000 Total Cost = $60,000,000 If…
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Q: 2,000 1,000 2 10 15
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Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…
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A: There are three types of returns to scale- Economies of scale The constant return to scale…
Q: The most likely explanation for economies of scale is
A: Economies of scale refer to the cost advantages that a business obtains due to expansion. It's the…
Q: Businesses wanted to reduce their cost to the minimum without compromising the product quality and…
A: Companies benefit from economies of scale when their production gets more efficient. Economies of…
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: If the average variable cost is $23 and the average fixed cost is $12, what is the average cost
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Q: Why does total cost increase faster as output increases?
A: A producer has to incur various types of costs in order to produce goods and services. This includes…
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: a)In your own words, state and briefly explain two reasons that lead to economies of scale. 50 to…
A: Economies of scale occur when the business grows and it results in lower costs to the businesses and…
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: Why is having a business objective of increased economies of scale always desirable?
A: Economies of Scale in the Business World When it comes to economies of scale, the size of the…
Q: A Closer Look in the Economies of Scale Businesses wanted to reduce their cost to the minimum…
A: Companies benefit from economies of scale when their production gets more efficient. Economies of…
Q: Average cost decrease indefinitely as output expands. Is that true?
A: Economies of scale signifies a scenario where a firm reaps the cost benefits while carrying out…
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A: Cost advantages accrue to companies when their production processes become more streamlined. By…
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Q: Q10. Label and complete the following daily cost schedule for Company A as directed by the question…
A: here we calculate the total cost and average variable cost and average total cost and marginal cost…
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: Describe the two main types of internal diseconomies of scale?
A: According to the given question In simple words we can say that the internal diseconomies of scale…
Q: Ifmarginal cost is below average total cost, average total cost will
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A: The objective of the following assessment is to evaluate the marginal cost and average cost for the…
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A: The marginal cost function is given below:The fixed cost of production (at x =0), is…
Q: Graphically, the marginal cost curve and the average total cost curve intersect where
A: The marginal cost (MC) curve and the average total cost (ATC) curve interest at the minimum point of…
Q: The total cost function is : C= 2x3+4x2+2 Find the marginal cost of C?
A: Given: C= 2x3+4x2+2 Where, x is the number of units that has been produced.
Q: 3. What are the differences between the internal and external economies of scale?
A: When it increases its level of output, it often experiences some cost advantage, referred to as…
Q: The cost function of a firm is given as C1 = 400 + 200 + 4Q" using this cost function what is the…
A: here we calculate the efficient scale of the firm by using the cost function so the calculation of…
Q: is it true that the marginal cost curve intersects the average variable cost curve at the break-even…
A: Marginal cost: It is the cost that is incurred by the firm to produce one extra unit. Average…
Q: Use economies of scale to link a firm’s size and its average costs in the long run.
A: Economies of scale refers to a situation when the average cost of production falls with higher level…
Q: What is the total variable cost of 2 oil changes?
A: Total cost is the sum of fixed cost and variable cost.
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: ? SAC А. В. SAC С. SAC AC AC АС ? ? ? SAC D. Е. F. SAC АС SAC АС AC ? ? 1. Of the graphs shown…
A: Returns to scale express the long-run returns as the production scale increases, when the level of…
Q: ased on your own personal observations of the college, do you think the low-income Community College…
A: Economies of scale refer to a situation where the already existing firm/ organization/ institution…
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- Suppose the cost of machines increases to 55, while the cost of labor stays at 40. How would that affect the total cost of the three methods? Which method should the film choose now?What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
- Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter?
- Give the three reasons that explain why the division of labor increases an economys level of production.What is a production technology?How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
- Christ Embassy Complete the fallowing ceA schedules LoutPutiohalcost Average cost Marginal cost LCA CHURCH3 2. 14 3. 4. 20 6. 6. 48 a At ahat autput is Ac et fte mininum. 3.At what output is Mc at the mininum? C.At hat output does AC Start increasing dAt what ortput does Mc tart ho be qrea ter tan Ac ? e what s te maximum autput. LERDERS &of Microeconomics Spring20 fall20 Moving along the total product curve, which of the following is held constant? Select one: O a. quantity of labor O b. technology O c. total cost O d. None of the above answers is correct. O e. total product4. On the graph, where do economies of scale exist? A. In the range of outputs from A to B. B. In the range of outputs from B to C. OC. At point B only. OD. At point A only. OE. In the range of outputs from A to C. OF At point C only. Long Run Average Costs B Output LRAC C
