In an industry, the minimum efficient scale is reached when a firm produces 500 units of output at an average cost of $20 per unit. If a smaller firm in the same industry produces 300 units of output with an average cost of $25 per unit, what can be concluded? The smaller firm is operating above the minimum efficient scale The smaller firm is operating at the minimum efficient scale. The smaller firm is operating below the minimum efficient scale O The smaller firm's average cost is irrelevant to the concept of minimum efficient scale

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: A firm’s cost function is C(q) = 100q − q^2+1/5q^3+450 (a) Derive the marginal cost, the average…

A: Cost is the expenditure incurred on the production of goods and services.

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Q: ATC4 LRATO ATC ATC OUTPUT COST PER UNIT

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A: We are briefly discussing the economies of scale phenomenon to answer this question.

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Q: When output is zero, total fixed cost is zero. O True O False

A: Total fixed cost it is cost that do not vary with level of output.

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Q: 2.10 The long-run average cost curve for an industry is repre- sented in the following graph. Add…

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A: AVC is the average variable cost. It is equal to VC/QATC is the average variable cost. It is equal…