Explain the concept of economies of scale. Identify two reasons why economies of scale exist. 1-2 paragraphs

Q: A production process uses two inputs, labor and capital. If the marginal product of labor per dollar…

A: Marginal productivity refers to the additional output produced by using one more unit of input while…

Q: 35) What is the firm’s efficient scale?  A. the quantity of output that minimizes average total…

A: (35)  A firm's efficient scale implies the production of output such that it minimizes the average…

Q: Explain what we mean by increasing, decreasing and constant returns to scale.

A: Returns to scale is defined as the change in output due to a quantitative increase in the inputs of…

Q: Serena and John run a business that sets up and tests computers. Assume that Serena and John can…

A: The Production Possibility Frontier arose from the economic theories of early twentieth-century…

Q: For each of the following production functions, determine if there are increasing. decreasing, or…

A: Returns to scale is an significnat term in economics which describe that how much the ouput will…

Q: Quantity 1 Firm A Firm B Firm C A 3 4 5 6 7 10 21 32 43 54 66 80 10 15 18 23 35 50 65 10 19 28 37 46…

A: Economies of scale refer to the phenomenon where a firm's long-run average total cost (LRATC)…

Q: Which of the curves in the following graph is the average total cost curve?

A: Average total cost refers to the approximate total cost of production at different levels of…