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: With a total cost function of: TC = 50 + 2Q +2Q², where Q is the output quantity, solve for the…

A: Total cost TC = 50 + 2Q + 2Q2 Fixed cost Fixed cost is that part of TC which does not depends on…

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

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A: Given:F(L,K)=L14K12w=2r=4 FC= $100

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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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A: Known fact:Economies of scale: The economies of scale is a situation in which output can be doubled…

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A: Here, it is given that a firm in the furniture market is analyzing its short-run total cost.…

Q: What is the marginal cost of producing the third unit of output? (Correct answer is $24)

A: Marginal cost is the additional cost that is incurred on production of an additional unit of output.…

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A: Economies of scale occur when with an increase in the quantity of the output in the production…

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Q: If average cost is $30 and the total cost is $900 What output must the firm have produced

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Q: ATC4 LRATO ATC ATC OUTPUT COST PER UNIT

A: Average total cost is the total cost incurred for a single unit of output out of the total output.…

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

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A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000

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A: Economies of scale basically refer to the cost advantages that a business can achieve as it…

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A: When Q = 0, TC = TFC = $200, which stays unchanged across output levels. TC = TFC + TVC = TFC + AVC…

Q: e graph below illustrates a series of short-run average cost curves, numbered AC1 through AC5, which…

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Q: In the given figure, short-run cost curves are depicted. What role does the graph's Curve Y…

A: "Cost curves in economics represents a graph of the costs involved in the production process as a…

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A: Here, an improvement in the technology used, would decrease the cost and will shift the cost curve…

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A: Net product costs are calculated by combining total direct resources and labor costs, and also total…

Q: How does the impact of fixed costs change production decisions in the short run and in the long run?…

A: Fixed cost refers to the cost which remains the same at each level of output. It means that fixed…

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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A: A firm experiences economies of scale when its average total cost decreases with increase in…

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A: The fixed cost is constant regardless of price and quantity e.g. rent. It is also known as indirect…

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A: Given Information: Fixed cost = $4000 For the first 100 units, the marginal cost = $50 per unit…

Q: Total Cost Marginal Cost (Dollars) Fixed Cost Variable Cost Average Variable Cost Average Total Cost…

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Q: Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run…

A: Economies of scale are the profits or advantages that firms earn due to their size of the operation.…

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A: The provided information are: Total fixed cost = $300000 Average variable cost = $80

Q: Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…

A: The long-run average total cost curve declines because apparently, the firm becomes efficient in…

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

A: The long-run average cost (LRAC) curve, which has a U-shape, plots all potential production levels…

Q: Which is the correct formula for the total cost of production?Note: TC is total Cost, AFC is average…

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Q: Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also…

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