Refer to Figure 13-7. This firm experiences diseconomies of scale at what output levels?Figure 13-7AverageTotalCost ($)ATCATCAATCCABCDNQuantity ofAutomobilesper dayoutput levels above Noutput levels between M and Noutput levels below MAll of the above are correct, if the firm is operating in the long run.

Average total cost is the ratio of the total cost and total quantity i.e Average total cost =…

Refer to Figure 13-7. This firm experiences disecono mies of scale at what output levels? Figure 13-7 Average Total Cost (5) ATC ATCC A B ATCA Quantity of Automobiles per day output levels above N output levels between M and N output levels below M

Refer to Figure 13-7. This firm experiences disecono mies of scale at what output levels? Figure 13-7 Average Total Cost (5) ATC ATCC A B ATCA Quantity of Automobiles per day output levels above N output levels between M and N output levels below M

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: $10 ATC 8 AVC 10 20 30 40 Quantity Using the above graph, calculate the firm's total cost of…

A: Average cost is per unit cost of production. Average variable cost is the per unit variable cost of…

Q: 4) Which of the following cost curves is upward sloping at any output level? Average fixed cost…

A: The cost curve refers to the graph of the costs of production as a function of the total quantity…

Q: A firm's total cost curve is TC-Q3-20Q2 +45Q+ 200. Its marginal cost is 3Q² - 40Q+45 Identify the…

A: Total cost(TC) refers to the overall expense incurred by a firm in producing a certain quantity of…

Q: Use the cost table below to find the following marginal costs. Output quantity 20 40 60 80 100 120…

A: The marginal cost is the change in total production cost that comes from making or producing one…

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: As per the question, the short run is the period where the firm would not be able to adjust with…

Q: COST 10 9 80 6 5 3 لیا 2 B 1 2 3 4 5 6 7 8 9 10 QUANTITY Refer to Figure 13-2. Which of the curves…

A: Average variable cost is the variable cost divided by the quantity.AVC is U shaped curve.Average…

Q: a) What is Quantity of cars TC $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000…

A: The total sum that a producer must pay to create all of their goods and services is referred to as…

Q: The figure to the right illustrates the long-run average cost curve for a company that makes motors…

A: Economies of scale:When the firm is efficient by increasing the supply and production and reducing…

Q: Figure 13-9 The figure below depicts average total cost functions for a firm that produces…

A: The entire cost of manufacturing divided by the total number of units produced yields the average…

Q: onl This Question: M Hom The graph shows the average variable cost curve and average total cost…

A: The cost of creating each level of output is represented by the total cost curve, so if we can…

Q: OLY an NO ATC AVC Per the above graph of cost curves, assume that the horizontal lines at P1, P2, P3…

A: Under a perfectly competitive market structure, firms are price takers and individual firms have…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

Q: ATC ATC2 ATC3 ATCA 2 4 10 Quantity (thousands of copies per day) A copy shop is choosing between…

A: In a market, when a firm produces an output and tries to generate at a level with the lowest average…

Q: a) construct the cost schedule for a firm operating in the short run b) Graph the average…

A: At zero level of quantity, total cost and total fixed cost are equal, and total variable cost is…

Q: Complete the cost table to make it consistent with the given numbers. 0 TC TFC TVC ATC AFC AVC MC 0…

A: The table you've provided is a cost table, commonly used in economics to analyze the costs…

Q: he figure to the right ustrates the longun verage cost curve for a company hat makes motors Suppose…

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

Q: Cost, revenues (dollars) 4.00 3.50 0 MC 20 Quantity ATC MR If this firm is currently producing 20…

A: Cost refers to the amount of resources, such as money, time, effort, or resources, that must be…

Q: a. When output is 10, total variable cost is $ b. When output is 20, average fixed cost is $ c. When…

A: Total cost is the sum of variable cost and fixed cost. Fixed cost remains constant at each level of…

Q: A firm operates in the short run with total fixed costs of $8750 and total variable costs related to…

A: Total cost is the sum of fixed cost and variable cost. Total variable cost changes with the change…

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

A: Total cost is the sum of variable cost and fixed cost. Fixed cost remains same at all levels of…

Q: Output 1 2 3 4 5 6 Total Cost $ 80 160 240 320 400 480 560 All of the following are correct, except…

A: The costs of a firm refer to the expenses incurred in the production of goods or services. There are…

Q: Consider the following cost information for a pizzeria: Quantity Total Cost Variable Cost (Dozens of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: able 11-6 Quantity of workers Quantity of foot massages per day Fixed cost Variable cost Total…

A: We have per day fixed cost of message booth..

Q: Your cousin Vinnie owns a painting company withfixed costs of S200 and the following schedule…

A: Given: Quantity Variable cost 1 10 2 20 3 40 4 80 5 160 6 30 7 640

Q: Mariel runs an ice cream shop. Her short-run cost is given by 300 + 3000 + 3g where q s the number…

A: TC(total cost) has 2 components- TFC(total fixed cost) and TVC(total variable cost). ATC(average…

Q: Quantity of cars Oa Ob Oc Od 1-8 6-8 1 2 46 3 4 5 6 7 8 LRATC of car $30,000 20,000 The wagon is a…

A: A firm which is long-run average total cost (LRATC) shows the average cost per unit of output over a…

Q: 66. Refer to Figure 12-4. What is the amount of its total fixed cost? 1. A) $1,080 2. B) $1,440 3.…

A: In economics, a competitive firm operates in a perfectly competitive market, characterized by the…

Q: Refer to Figure 13-8. This firm experiences diseconomies of scale at what output levels? output…

A: Diseconomies of scale means average total cost of production increases when level of output is…

Q: When Yennefer produces 15 spells her total cost is $4,298 and her average variable cost is $18. What…

A: Total cost = Fixed cost + Variable cost Variable cost = Average variable cost * Quantity

Q: The figure below depicts average total cost functions for a firm that produces automobiles. Average…

A: The average total cost (ATC) function in economics represents the average cost per unit of output…

Q: It costs a company $500,000 to produce 1,000 treadmills. The company’s cost will be $500,350 if it…

A: Given, Total Cost for 1000 treadmill=$500,000 Total Cost for 1001 treadmills= $500,350

Q: Total Total Cost Output 1,000 1 2,000 2,800 3,500 4 4,000 4,500 5,200 6,000 8 7,000 Refer to Table…

A: Marginal cost is the change in total cost due to change in output. Average total cost is the total…

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

A: The given table can be completed by using the following equations.

Q: Output Total Fixed Cost (TFC) Total Variable Cost (TVC) Total Cost (TC) Average Fixed Cost (AFC)…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: By doubling a machine's inputs, the output increases three times. How does this affect cost and what…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Determine if the statements and expressions regarding costs are true or false. True False Average…

A: We can re-create the table correctly as follows.

Q: Reler to the to graph on the nght Which level of ouput in the gnph below represents the minimum…

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

Q: shows the long-run average costs for Inmode, a manufacturer of Internet modems. Quantity per Day…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Your cousin Vinnie owns a painting company with fixed costs of $200 and thefollowing schedule for…

A: Cost is defined as an expenditure that is incurred in the production of a product or service or to…

Q: When Yennefer produces 18 spells her average total cost is $35.69 and her fixed cost is $180. What…

A: Total cost = Fixed cost + Variable cost Total cost = Average total cost * quantity

Q: tefer to the to graph on the right Which level of output in the raph below represents the minimum…

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

Q: The figure shows the cost structure for a firm. When the output level is 100 units the fixed cost is…

A: Fixed costs are expenses that do not change with the level of production or sales within a certain…

Q: © Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If…

A: The average total cost refers to the approximate total cost of production a firm incurs at different…

Q: $22 00 20.00 18.00 Which size bookstore is more likely to experience diseconomies of scale? Long-run…

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

Question

Refer to Figure 13-7. This firm experiences disecono
mies of scale at what output levels?
Figure 13-7
Average
Total
Cost ($)
ATC
ATCA
ATCC
A
B
C
D
N
Quantity of
Automobiles
per day
output levels above N
output levels between M and N
output levels below M
All of the above are correct, if the firm is ope
rating in the long run.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

3) Which of the following is not true about the marginal cost? Oo The marginal cost (MC) curve is U shaped. It can be calculated by dividing the change in the total cost by the change in the output. It is the additional cost incurred by a firm from changing output by a certain amount. It can be calculated by dividing the total cost by the quantity.
Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0 1000 1 100 2 100 3 400 4 450 5 1600 6 3200 7 6400 a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?
es Output 6 1 2 3 4 5 S 6 17 8 9 Total Cost $ 2,500 3,416 4,040 4.480 4,900 5,220 5,540 6,310 7,328 9,718 2500 Total Variable Cost b. What is the value of total fixed cost? 6 units $ 0 units 910 1540 1980 2400 2720 3040 3810 4820 7210 Marginal Cost c. What is the most productive level of output? $ 910 630 440 420 320 320 770 1010 2390 Average Total Cost $ d. At what output is economic capacity? Output: e. If TFC doubled, what is the marginal cost of the 7th unit? 3410 2020 1493.33 1225 1044 923.33 901.42 915 1078.89 Average Variable Cost $ 910 770 660 600 544 506.67 544 29 6025 801.11 Average Fixed Cost 2500 1250 833.33 625 500 416.67 35713 312.5 27778
Consider the production of hamburgers. The average total cost (ATC) and average fixed cost (AFC) of producing hamburgers are illustrated in the graph to the right Use the four-point curve drawing tool to graph the average variable cost of producing one, two, three, and four thousand hamburgers. Properly label this curve Carefully follow the instructions above, and only draw the required objects. Cost (cente per unit) 26 24- 22- 20 18- 16 14- 12- 10 B 6 4- 2 ATC AFG Quantity of hamburgers (in 1000s) Q du
QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it would be able to produce and the total cost for various plant sizes, as shown in the accompanying table. If the firm is currently using plant size C, the firm is experiencing which of the following? Plant Size Quantity Total Cost ($) A 1 10 10 80 C 100 900 200 2,000 500 5,500 F 1,000 15,000 economies of scale O diseconomies of scale constant returns to scale O diminishing marginal product O increasing marginal product
Section 11.5 The Short-Run and Long-Run Average Total Cost Curves exhibit 1 SRATC for small plant SRATC for medium plant SRATC tor large plant LRATC B $500 $400 Economies of Scale Constant Returns to Saie 1,000 1,200 Quantity of Computers (per day) Notice that the long-run average total cost (LRATC) curve is much flatter than the short-run average total cost (SRATC) curve. This is because firms can be more flexible in the long run-they can choose which short-run cost curve they want to operate along, by choosing their plant scale. But they cannot do this in the short run, during which they are stuck with their existing short-run cost curve. That is, in the short run, the firm operates with the short-run curve it has based on past decisions. However, in the lang run, the firm is able to choose the short-run curve it wants to use. In Exhibit 1 above, explain why the curve between A and B looks different than the curve from A to C. Provide an example of how a firm could opt to follow the…
1,200 B TC 1,000 850 700 TVC A 500 2 3 Number of microwave ovens 6. Refer to the figure above. Based on the information shown, the average fixed costs of producing two units of output are: 500 Cost in dollars
ips Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over this range of output, the marginal cost curve is Grade It Now the average Save & Continue
If short run total costs are 2q2 + 50q + 50, and output is 15, average variable costs will be a. 80 b. 50 C. 450 d. 105 e. 52.50
Cost in dollars 1,200 1,000 850 700 500 0 500 B TC TVC 2 3 6 Number of microwave ovens Refer to the figure above. Based on the information shown, the average fixed costs of producing two units of output are:
Output TC ($) 200 250 15 300 20 350 23 400 25 450 Refer to the information above to answer this question. If total variable cost decreases by 20% at all levels of output, what is ATC when output is 20? O a. $12 O b. $30 Oc. $10 O d. $16 O e. $80
Question 12 of 20 $20 MC $18 $16 $14 ATC $12 AVC $10 $8 $6 $4 $2 $0 20 40 60 80 100 Output (Q) In the diagram above, when the firm's Output (Q) is 60, Average Total Cost (ATC) is: $14.00 $18.00 $11.00 O $12.50