Refer to Figure 13-8. This firm experiences diseconomies of scale at what output levels? output levels above N output levels below M O All of the above are correct, if the firm is operating in the long run.

Refer to Figure 13-8. This firm experiences diseconomies of scale at what output levels? output levels above N output levels below M O All of the above are correct, if the firm is operating in the long run.

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: Diminishing marginal returns occur when: Group of answer choices the size of the plant is increased…

A: Diminishing marginal returns occur when the addition of one more unit of a variable input leads to a…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: Given: To Find: The short-run total cost if Ike's Bikes is currently producing 600 bikes: The…

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: The table below shows the short-run production function for Michelle's Accounting Company. Number…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: High AFC High ATC High MC High ATC MC ATC Minimum of ATC Diminishing marginal product sets in AFC…

A: The total fixed cost (TFC) per unit of production is referred to as average fixed cost (AFC). AFC =…

Q: A firm with fixed cost (FC) of $150, average variable cost (AVC) of $2.5 and average total cost…

A: Fixed cost is the cost that does not change with the change in output. Average fixed cost is the…

Q: Consider the following table of long-run total costs for three different firms: Quantity 1 2 3 4 5 6…

A: The long-run average cost curve represents the least average cost to produce any given level of…

Q: AVC = 88−0.026Q + 0.000003Q2 Greene Enterprises faces total fixed costs (TFC) of $300,000. When…

A: The average variable cost is the variable cost per unit of output. Variable cost is the cost is…

Q: Suppose each firm of the industry has a short-run total cost curve of TC = 5+4q+q², where q is…

A: Total cost of production refers to the total monetary value incurred on fixed as well as variable…

Q: 6. A firm's long-run total cost function is given by LTC = 115.000Q-500Q2 + G where Q is the…

A: Gradually in simple words we can say that the economies of scale are determined to be as the cost…

Q: Due to the diminishing marginal returns in the short run production, for a typical firm, in the…

A: Diminishing marginal returns refers to the situation when firm is facing an increase in marginal…

Q: What potential diseconomies of scale would be present if a firm is at profit maximizing point and…

A: Diseconomies of scale: It is an economic state which generally means that the as the business or…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

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: Long Run Costs curves [are | are not ] always U-shaped. One way to prove this is to look at…

A: LRAC depicts the lowest possible average production cost, allowing entire production inputs to vary…

Q: Output Total Cost 0 $400 1 $900 2 $1,300 3 $1,600 4 $2,000 5 $2,500 6 $3,100 The above cost data are…

A: Average variable cost (AVC) is calculated by dividing total variable cost by the quantity of output.…

Q: Suppose each firm of the industry has a short-run total cost curve of C=5+2q+q2, where q is output…

A: Total cost is the total cost of producing the goods. Total cost is the sum of total fixed cost and…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC

Q: = Q5. A firm has the following fixed proportion production function q min(k, 21). a. Find the firms…

A: The production function reveals the complex link between inputs and outputs in crafting goods and…

Q: Which of the following statements is correct?

A: The returns to scale represents by how much the total output increases if all the inputs used in…

Q: Suppose a firm producing cell phones is operating such that marginal costs are much lower than…

A: The marginal cost of the firm is the cost it will incur by producing one additional unit of output.…

Q: Suppose that a firm's long-run average total costs of producing smart phones increases as it…

A: The objective of the question is to identify the economic concept that describes a situation where a…

Q: the effect of fixed costs upon AC as output increases the law of demand the law of constant…

A: increasing and decreasing returns to scale

Q: Complete the following table of short-run fixed costs. (Enter your responses rounded to two decimal…

A: The average fixed cost is the fixed cost per unit of output. AFC=TFCq Total fixed cost remains same…

Q: d) What is level of output corresponding to the minimum level of Ron's average variable cost curve?…

A: The short-run total cost of Ron's window washing services: The market for window washing services is…

Question

The figure below depicts average total cost
functions for a firm that produces automobiles.
Average
Total
Cost (S)
M
ATCA
ATC₁
ATCO
N
ATCD
Quantity of
Automobiles
per day
Refer to Figure 13-8. This firm experiences
diseconomies of scale at what output levels?
output levels above N
output levels below M
All of the above are correct, if the firm is
operating in the long run.
output levels between M and N

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: Define the Diseconomies of scale

VIEW

Step 2: Choose the right answer

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

2. A competitive firm uses two variable factors to produce its output, with a production function q min{x₁, x₂}. The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x₁. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no butput. What is the smallest integer price that would make a firm willing to produce a positive amount? b. d. $44 $41 $29 $13 $21
When the current amount of fixed cost minimizes the long-run ATC for the quantity of output being produced, the short-run ATC curve is necessarily * O horizontal. downward-sloping. above the long-run ATC curve. O below the long-run ATC curve. O touching the long-run ATC curve.
Show full answers and steps to part a) b) & c)
The table below shows ABC firm short-run production function. The company hires workers at a wage rate of $400 a day and his total fixed cost is $1000. Labor (workers) Total product (output) 0 0 1 12 2 25 3 30 4 44 5 50 Calculate the average total cost of producing 25 Calculate total cost of producing 47 units. Calculate average variable cost if 30 units are produced. Calculate the marginal product of producing 44 units. Calculate average product of the 4th worker
Consider a firm that suffers diseconomies of scale. If this firm wants to produce half as much output, it expects its total cost to be [a. more than, b. less than, c. exactly]half the initial cost. If this firm wants to raise the output by 45%, it expects its total cost to increase by [a. more than, b. less than, c.exactly] 45%.
22-23. Use this information to answer questions 22 and 23. A typical firm has a total cost function given by: TC = A.Q² + B.Q+ (C+D), where A, B, C & D are all positive constants and the term D represents the firm's fixed costs. 22. Suppose that the term C in the total cost function changes to a new figure that is twice as large. Thinking about the cost curves drawn on a graph, we would expect the following to happen (choose the best answer): A) B) H) I) J) ABOADAGAS 23. Use the information about the total cost function supplied above. The marginal cost curve will shift or rotate whenever (choose the best answer): A) B) C) D) H) I) Both the average variable cost curve AND the average cost curve shift (or rotate) down. Both the average variable cost curve AND the average cost curve shift (or rotate) up. The average cost curve shifts (or rotates) down. The average cost curve shifts (or rotates) up. J) The level of quantity where average cost is minimized falls. The level of quantity…