Long-run average c Number of units produced Figure 8.9 Which segment in the diagram represents the constant returns to scale portion of the long-run average total cost curve for the firm? ab bc Cost per unit

Long-run average c Number of units produced Figure 8.9 Which segment in the diagram represents the constant returns to scale portion of the long-run average total cost curve for the firm? ab bc Cost per unit

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

See similar textbooks

Related questions

Q: Sale on iPhone affects Galaxy Phones Analyze Galaxy Phone

A: previously the market of phones were dominated by Nokia and Motorola but currently the market of…

Q: In which of the service system does the customer affect the time of demand a. Low degree of customer…

A: In a market, when peope enter to make demand for goods and services, there are various factors that…

Q: I typed it in, it's wrong

A: Elasticity of demand is a concept used in economics to measure the responsiveness of the quantity…

Q: Please answer question number 6

A: Profit is maximized by firm when its marginal cost is equal to marginal revenue. The quantity will…

Q: Price Quantity (Dollars per lamp) (Lamps) Produce or Shut Down? Profit or Loss? 15 Shut down Loss 20…

A: please find the answer below.

Q: QUESTION 20 YEAR PRODUCT 1988 1989 1990 1991 price: $2.00 quantity: price: $1.00 1,000 $6.00 $8.00…

A: Consumer Price Index or CPI measures the total cost of goods and services that are being purchased…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: Can you do it without using tables? Pleas

A: Given, Amount repayable by an annuity payable annually - 97,550£ Time Period given - 17 Years…

Q: Tutorial

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: Corelation of purchasing ability of consumers and pricing system provide a case study

A: Pricing refers to the process of determining the monetary value of a product or service that a…

Q: do it without using tables

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: dccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc…

A: Your question is not visible.

Q: HOW TO DRAW A TABLE FORM

A: There are 4 possible ways in which the other player can act :- 1) always choose ‘C’ 2) He will…

Q: how do you calculate customer's life time value?

A: In this world of tough competition customers are acquired and lost over the firm’s lifetime, but a…

Q: What are some causes of rising food prices and the challenges faced by rural farmers in Mt. Royal,…

A: Growing food costs have important ramifications since they affect the accessibility and…

Q: Housing prices in the UK are generally very high, particularly in certain areas of the country such…

A: Equilibrium refers to situation in the market when quantity demanded by the consumer equals to the…

Q: Why is mobile marketing different from desktop marketing?

A: The provided question's answer includes the standpoint of economic theories and thus, it is answered…

Q: all the answers are incorrect. Can you please re-do?

A: Profits are maximized when marginal revenue equals marginal cost.

Q: Please answer question number 8

A: The marginal revenue of a unit is the difference between the total revenue achieved at the current…

Q: 48 45 43 -5 32 31 31 20 27 26 25 iPhone Battery Lost Phone Forgat iPhone MacBook Folders/Mais TOO…

A: A bar chart, sometimes known as a bar graph, is a diagram or graph that displays categorical data…

Q: Processing Insurance Claims Your insurance firm processes claims through its newer, larger,…

A: Cost analysis is a crucial tool in the process of deciaion making. Organizations can increase…

Question

Question 17 please solve

Long-run average cost (LAC)
b.
Number of units produced
Figure 8.9
Which segment in the diagram represents the constant returns to scale portion of
the long-run average total cost curve for the firm?
Oab
O bc
de
Cost per unit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How does fixed cost affect marginal cost? Why is this relationship important?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Are fixed costs also sunk costs? Explain.
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What is the difference between a fixed input and a variable input?
A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is 1,000. What does the average fixed cost curve look like? Use your response to explain what spreading the overhead means.
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.