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

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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

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Question 12. A firm's long-run production function is given by q = LK, where L denotes units of labour and K denotes units of capital. Each unit of labour L must be paid w > 0 and each unit of capital K incurs a cost of r > 0. Explain the cost minimisation problem. Explain the expansion path and derive the firm's long-run total cost function.
Which of the following statements is generally correct? * The long-run average total cost curve is U-shaped. Firms tend to experience economies of scale at high levels of output and diseconomies of scale at low levels of output. O Fixed costs are the greatest in the long run. The ATC of producing a particular quantity of output is the same in the short run and in the long run. O The short-run ATC curve intersects the long-run ATC curve at its minimum point.
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.
hi, can you solve this please ?
Show full answers and steps to part a) b) & c)
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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…
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