Economies of scale occur whenO1. a firm's average cost falls as it expands.2. average costs fall after new firms enter an industry.3. productivity increases lower all firms' costs.4. a firm's average cost rises as it expands.

Economies of scale refers to the production process by which average productivity is increased with…

Answered: Economies of scale occur when O 1. a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Average total cost equals a. change in total costs / quantity produced O b. (fixed costs + variable costs) / change in quantity produced O c. change in total costs / change in quantity produced d. (fixed costs + variable costs) / quantity produced
84
5. Costs in the short run versus in the long run Scooter's Scooters is a large American manufacturer of electric scooters operating out of Detroit. Currently, the company produces all of its scooters using a single manufacturing facility, its factory in town. Recently, management has been considering expanding operations to one or two additional factories. The following table presents the manufacturer's monthly short-run average total cost (SRATC) for various levels of production if it operates out of one, two, or three factories. (Note: Q equals the total quantity of scooters produced by all factories.) Average Total Cost (Dollars per scooter) Number of Factories Q=50 Q = 100 Q = 150 Q = 200 Q=250 =300 140 60 40 BO 160 320 2 230 110 40 40 110 230 3 320 160 80 40 60 140 Suppose Scooter's Scooters is currently producing 300 scooters per month in its only factory. Its short-run average total cost is $320 per scooter. Suppose Scooter's Scooters is expecting to produce 300 scooters per…
Completed 0 out of 30 Resources Submit All Question 16 of 30 The graph shows the costs, revenue, and demand facing a A profit-maximizing monopolistic competitor monopolistically competitive firm. Refer to the graph to answer the three questions. 50- Marginal cost 40- B 30 (5) 20-C Average cost The area covered by rectangle CDFE is the firm's ID 10- Demand 0- total cost. 10 20 30 40 50 60 70 80 90 100 1i0 -10- Marginal revenue total revenue. Quantity O profit. O None of the above. The area covered by rectangle A BDC is the firm's total cost. 8:19 P 46°F A E 4) 12/15/2 a Price ($)
5
22 23
Using the graph on the right, determine the output range over which increasing returns to scale occur. Increasing returns to scale occur over the output range OA. beyond Q, only. OB. 0 to Q₂ only. OC. Q, to Q₂ only. OD. 0 to Q, only OE. Q₂ to Q₂ only G Q₁ 0₂ SRATC, SRATC, LRAC 16 Output
7. Problems and Applications Q10 Consider the following table of long-run total costs for three different firms: A B Quantity Firm A Firm B Firm C с 1 2 3 4 5 60 70 80 90 100 11 24 39 56 75 21 34 49 66 85 Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.) Firm Economies of Scale O O 6 7 110 120 96 119 106 129 0 Diseconomies of Scale
hould a competitive firm ever produce when it is losing money? Why or why not? D A. No, the firm should shutdown if it is making an accounting loss. O B. No, the firm should shutdown if it is making an economic loss. O C. Yes, as long as revenue can cover total variable costs plus any portion of fixed costs. O D. Yes, as long as revenue can cover some portion of total variable costs.
4.
Please give reasoning for all options and explain properly.
31. Applied Optimization Due Wednesday, Mar 25, 11:59pm CDT O Find the economic lot or economic order quantity size which minimizes total cost Question A company produces and sells 2, 500 sets of silverware each year. Each production run has a fixed cost of $200 and an additional cost of $5 per set of silverware. To store a set for a full year costs $4. What is the optimal number of production runs the company should make each year? Do not include units with your answer. Provide your answer below: MAR 25 Q Search or type URL +) 2$ 3 4 т K в command M. * 00 つ D.

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Economies of scale occur when O 1. a firm's average cost falls as it expands. O 2. average costs fall after new firms enter an industry. O 3. productivity increases lower all firms' costs. O 4. a firm's average cost rises as it expands.