If a firm triples its output in the long run and costs per unit increase, we can conclude that: Group of answer choices technological progress has occurred. economies of scale are being realized. the firm is encountering diminishing returns. diseconomies of scale are being encountered.

Q: Diminishing marginal returns occur when: Group of answer choices the size of the plant is increased…

A: Diminishing marginal returns occur when the addition of one more unit of a variable input leads to a…

Q: The long-run average total cost curve Multiple Choice O can be derived by summing horizontally the…

A: The long-run average total cost (LRATC) curve is a curve that shows the lowest cost at which a firm…

Q: 7) When a firm becomes so large it is difficult to coordinate and control, it is most likely that A)…

A: Diseconomies of scale is a situation where the growth of the business becomes extremely large. As it…

Q: Which of the following results from bureaucratic red tape, breakdown of top-to-bottom communication,…

A: When the size of the firm becomes too large, it becomes unmanageable and thus experiences…

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: In the long run, the total cost function will be: Selected answer will be automatically saved. For…

A: Long run is the time period where no inputs are fixed instead all inputs are variable.  In short run…

Q: The accompanying table gives cost data for a firm that is selling in a purely competitive market.…

A: One of the primary concepts in economics is the concept of marginal cost, which is the extra expense…

Q: Average fixed costs of production will rise at a fixed rate as more is produced. appear as a…

A: In microeconomics, the average fixed expense is the fixed expenses associated with the production…

Q: The marginal cost curve: is a vertical line. generally rises at first and then declines as output…

A: Marginal cost is the cost of producing additional unit of output. The shape of marginal cost depends…

Q: T have equipment that makes it most efficient to have two or three people to help with bottling…

A: The total output or quantity increases at an increasing rate at first when the number of labor…

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: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC…

A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC =…

Q: A firm with fixed cost (FC) of $150, average variable cost (AVC) of $2.5 and average total cost…

A: Fixed cost is the cost that does not change with the change in output.  Average fixed cost is the…

Q: Elegant Settings manufactures stainless steel cutlery. The table below shows the company's cost…

A: The cost data is provided below. Quantity Long Run Average Cost1004020035300304003050035

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: The law of diminishing returns results in Multiple Choice O O O O an eventually rising marginal…

A: Meaning of Economics: The term economics refers to the situation under which there remain…

Q: Which cost concept is used to determine the level of output at which a firm neither makes a profit…

A: While inspecting the monetary parts of a business, different cost ideas become an integral factor.…

Q: Due to the diminishing marginal returns in the short run production, for a typical firm, in the…

A: Diminishing marginal returns refers to the situation when firm is facing an increase in marginal…

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: nal cost Multiple Choice O equals both average variable cost and average total cost at their…

A: The marginal cost measures the change in the total cost when one additional unit of output 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: Fixed costs are best defined as costs that do not vary with output. the amount that one more unit of…

A: Fixed Cost: It is the cost that is incurred for purchasing fixed factors of production. It 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: An economist estimated that the cost function of a single-product firm is: C(Q) = 70 + 30Q + 20Q2 +…

A: This analysis investigates the cost structure of a single-product firm based on the provided cost…

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

A: Answer to the question is as :

Q: For the following industries, state whether the long-run average cost curve has an extended range…

A: Returns to scale is the quantitative change in outputs of an industry or firm in response to an…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: Diseconomies of scale occur mainly because

A: Diseconomies of scale is associated with the increasing cost per unit with increase in the scale of…

Q: Long Run Costs curves [are | are not ] always U-shaped. One way to prove this is to look at…

A: LRAC depicts the lowest possible average production cost, allowing entire production inputs to vary…

Q: When marginal cost is greater than average total cost, the Select one: average total cost decreases…

A: Marginal cost (MC) refers to the additional cost of production realized with an increase in the…

Q: The minimum efficient scale of a firm Multiple Choice is realized somewhere in the range of…

A: We can calculate long run average total cost by dividing long run total cost by output. Long run…

Q: Scale economies are said to be present when

A: The average cost curve determines the average cost of producing a given level of output.  The…

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: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC