LR-ATC Q2 Q3 Q4 Output In the above figure, between Q3 and Q4 units, the firm experiences O a. diseconomies of scale. O b. constant returns to scale. O c economies of scale. O d. None of the answers is correct. LR-ATC

LR-ATC Q2 Q3 Q4 Output In the above figure, between Q3 and Q4 units, the firm experiences O a. diseconomies of scale. O b. constant returns to scale. O c economies of scale. O d. None of the answers is correct. LR-ATC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Consider the case of three inputs to produce a product. The function is given as f(aX 25, aX.5, aX…

A: Constant returns to scale: After input is increased by any proportion, the output also increases by…

Q: Q48 Marginal cost is defined as the... a. Change in total cost resulting from an additional unit of…

A: Marginal cost is one of the cost of production. Cost is very important factor for a firm. There are…

Q: Refer to the short-run production and cost data in the figures below. In Figure A curve (1) is and…

A: Average product is total product per unit input. Marginal product measures the change in total…

Q: What is the total output changes due to changes in all inputs in the same proportion is called as?…

A: In the field of financial matters, especially in the creation hypothesis, understanding how the…

Q: ģģ Plant 1 Plant 2 ACI AC2 W 01 02 03 Q4 Plant 3 Select one: O A. Q₁ and Q4. B. Q₁ and Q3. C. Q4 and…

A: The combination of total fixed and variable cost that divides the total number of units in the…

Q: As output increases, total cost total fixed cost and total variable cost O. increases; does not…

A: The total cost incurred by a firm includes fixed cost and variable cost. Fixed costs do not change…

Q: A certain amount of output can be produced by many small plants or one large plant. The large plant…

A: A firm in a market that can produce goods and services at the lowest average cost and increase…

Q: Suppose an artist produces 6 paintings. If fixed costs are $200 and variable costs are $100, then…

A: There are mainly two type of cost , FIXED COST and VARIABLE COST which is used in production ,…

Q: *33) Economies of scale exist when the A) total cost of production falls as the output increases. B)…

A: Economies of scale alludes to the peculiarity where the normal expenses per unit of result decline…

Q: 1. Economies of scale exist over the range of output to units. Does the firm experience diseconomies…

A: Economies of Scale This describes the cost savings that occur as a company expands its scale of…

Q: Total fixed cost cannot be determined from the information provided. is equal to $50. is equal to…

A: The cost to any business is the expenditure incurred to a business firm during the production…

Q: The long run is best defined as a time period O during which at least one input cannot be changed. O…

A: Some factors of production vary with the output produced in the short run, while some remains…

Q: What is miimum effcient scae Mirimum efcient scale is OA e level of output at which a fim begins to…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: If all inputs triple and output increases by less than three times the original amount of output,…

A: Returns to scale is a concept that describes the relationship between changes in the scale of…

Q: A cost that is non-recoverable, such as the time and fuel costs spent driving to a ski area when…

A: Costs can be categorized into various types: implicit, explicit, sunk, accounting etc. out of…

Q: Your cousin Vinnie owns a painting company with fixed costs of $250 and the following schedule for…

A: This can be defined as a concept that shows the cost incurred in the production process of a…

Q: in the long run, firms generally experience diseconomies of scale, first because the large initial…

A: Economies of scale is a situation of cost advantage that a firm experiences as their long-run…

Q: 0. If all inputs are trebled and the resultant output is doubled, this is a case of

A: Returns to scale refers to the extent of change in output level when all the inputs are raised by…

Q: If a firm increases all of its inputs by 8 percent and its output increases by 8 percent, then…

A: Returns to scale gives the proportionality of change in output when there is change in the amount of…

Q: O Attempt 4 Portia owns and manages a sporting apparel company. Consider the given average cost…

A: Answer: (1). Introduction: Marginal cost cuts both AC and AVC at their minimum points. The minimum…

Q: Suppose a firm is producing in the long run. When it produces 2,000 units of output, its total cost…

A: Correct : increasing then decreasing

Q: Exhibit 6-17 Long-run average cost curve 1,000 Costs 800 per unit (dollars) 600 400 200 Q₁ SRATC,…

A: The long-run average total cost (LRATC) curve shows a firm's lowest cost of producing different…

Q: 50. If all inputs are trebled and the resultant output is doubled, this is a case of

A: answer is given below

Q: When a firm doubles its inputs and finds that its output has more than doubled, this is known as а.…

A: Inputs and output are important for business. Inputs are raw materials, equipment, and machinery…

Q: For the function y = x2x₂ + 5x22 determine whether it exhibits increasing, decreasing or constant…

A: A firm in a market can produce goods and services at the lowest average cost and increase the…

Q: As the accounting industry expands, the demand for certified public accountants (CPAs) also…

A: Demand refers to the desire or willingness of individuals or organizations to purchase a particular…

Q: Assume a firm has the long run total cost presented in the table below. Output TC $8 $14 $18 4. $20…

A: The total cost of production is defined as the amount in monetary terms a firm incurs when it…

Q: A firm's total cost is $12,000. Its variable cost is $5,500. What is the firm's fixed cost?

A: Correct : Fixed cost= $6500 Fixed cost is the part of total cost that does not depend on output and…

Q: Which of the following factors co Select all that apply. A B C fixed capital costs that diminish…

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

Q: It costs a firm $200 per unit to produce product A and $350 per unit to produc together at $500 per…

A: There two type of action in which firm can work (i) scale and (ii) scope , if the firm work good in…

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: If a firm triples inputs and produces twice the output, then there are constant returns to scale.…

A: Return to scale is a long-run concept that states the proportional change in output due to a…

Q: Suppose a particular firm exhibits constant returns to scale as it increases its output over any…

A: Returns to scale refers to proportional change in total cost in response to proportional change in…

Q: Firm Beta finds that when it triples all of its inputs, output doubles. Firm Beta's production…

A: In a market, firm produces output using the combination of input resources. The change in output…

Q: The average product is the greatest in the short run when the A) marginal product is greater than…

A: In a market, average, marginal and total product have relationship with each other as they explain…

Q: 50. If all inputs are trebled and the resultant output is doubled, this is а case of A. O Constant…

A: Returns to scale is a long-term concept which tells the response of output when the number of inputs…

Question

LR-ATC
Q1
Q2
Q3
Q4 Output
In the above figure, betwaen Q3 and Q4 units, the firm experiences
O a. diseconomies of scale.
O b. constant returns to scale.
O c economies of scale.
O d. None of the answers is correct.
LR-ATC

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

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

Question 14 What does scale of operation refer to, and what does it depend on? O a. It refers to the amount of fixed resources required, and it depends on market size O b. It refers to the number of years the fixed resources will last, and it depends on technology Oc. It refers to the total labor force needed, and it depends on the region of the country Od. It refers to the number of competitors in the market, and it depends on technology
Which action would decrease per unit costs? O b. O a. Decreasing output when experiencing diseconomies of scale. Decreasing output when experiencing economies of scale. Increasing output when experiencing diseconomies of scale. O d. Increasing output when experiencing constant returns to scale. Oc.
37)
In the figure, the intersection of curves A and B is the point at which 20 16 12 20 40 60 80 Quantily (unts per day) O A. average total cost is minimized. B. average variable cost is minimized. OC. average fixed cost is minimized. OD. total product is maximized. Costs per unit (dollars per unit) 8.
In the table, the average variable cost at 2 units of output is Output (balloons per hour] Total Cost (dollars per hour) $4.00 $7.00 $8.00 $12.50 $17.20 $22.00 $29.00 5 O A. $1.00. OB. $2.00. OC. $4.00. OD. $4.80. 1234t n6
Refer to Figure 13-7. When does the firm experience diseconomies of scale? a. if it changes its level of output from Q1 to Q2 b. if it changes its level of output from Q2 to Q3 c. if it changes its level of output from Q3 to Q4 d. if it changes its level of output from Q4 to Q5
Need assistance with choosing the correct answer
If AFC is $18 at a quantity of output of 200 units, and ATC is $27 at the same quantity of output, it follows that marginal cost is $10. total cost is $5,400. O AVC is $11. marginal cost is $9.
please help me understand my mistake
Using the graph on the right, determine the output range over which increasing returns to scale occur. Increasing returns to scale occur over the output range OA. beyond Q, only. OB. 0 to Q₂ only. OC. Q, to Q₂ only. OD. 0 to Q, only OE. Q₂ to Q₂ only G Q₁ 0₂ SRATC, SRATC, LRAC 16 Output
Suppose a firm is producing in the long run. When it produces 2,000 units of output, its total cost is $6,000. When it produces 2,200 units of output, its total cost is $6,200, and when it produces 2,400 units of output, its total cost is $7,000. This firm is experiencing. returns to scale. Odecreasing constant Oincreasing then decreasing. O decreasing then increasing Oincreasing
Follow the instructions. Typewritten for an upvote. No upvote for handwritten. PLEASE SKIP IF YOU HAVE ALREADY DONE THIS. Thank you