Refer to Figure 3 in Question 29. The quantity of output at which the MC and ATC curves cross is the O efficient scale of the firm. short-run equilibrium quantity of output for the firm. long-run equilibrium quantity of output for the firm. All of the above are correct.

Refer to Figure 3 in Question 29. The quantity of output at which the MC and ATC curves cross is the O efficient scale of the firm. short-run equilibrium quantity of output for the firm. long-run equilibrium quantity of output for the firm. All of the above are correct.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 11SQP

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

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please answer both of the questions thank you! =)
The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Qi marks the point of tangency between ATC1 and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Q2). ATC, ATC5 ATCA LRATC ATC, ATC, Q, Q5 OUTPUT COST PER UNIT
A leftward shift of a product supply curve might be cause by O An improvement in the relevant technique of production O A decline in the prices of needed inputs O An increase in consumer income O Some firms leaving the industry
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PROCE aaa P. Graph (a) 99₂ QUANTITY MC ATC PRICE a Point Y is a long-run equilibrium point. Ob. Point W is a long-run equilibrium point. Oe. Point Z is a long-run equilibrium point. Od. Points W, Y, and Z are short-run equilibria points. á P₂ P₁ Graph (b) 0, 0, 0, 0₂ QUANTITY Refer to Figure 14-7. Assume that the market starts in equilibrium at point W in graph (b) and that graph (a) illustrates the cost curves facing individual firms. Suppose that demand increases from Dg to D1. Which of the following statements is not correct?
The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); fom example, Q, marks the point of tangency between ATC, and LRAC. The orange point on ATC, indicates the firm's current output level in the short run (Q). ATC, ATC ATC LRAC ATC, ATC OUTPUT PER PERIOD COST PER UNIT
The short run is a time period such that the existing firms in the market do not have sufficient time to change the amounts of any of the inputs that they employ. O the existing firms in the market do not have sufficient time to either increase or decrease their current rate of output. the existing firms in the market do not have sufficient time to increase the size of their existing plant or build a new factory. new firms may build plants and enter the industry.
Refer to the graph shown. If a firm expected to produce 900 units when it built its plant but now desires to reduce its output to 600 units in the short run, it will use the plant size represented by: 0 300 O Multiple Choice O 600 00 SATC₁ Quantity SATC₁. SATC2. SATC3 SATC2 SATC3 SATC₂ SATCA. 900 L 1200 SATC Long-Run Average Cost 1500 Refer to the graph shown. A firm that shifts from SATC₁ to SATC2 is most likely to do so because planned output increases: Cost per unit 0 300 600 SATC₁ Multiple Choice 900 1200 1500 Quantity SATC₂ SATC2 SATC₂ to 300, from 300 to 900. from 300 to 600. SATC Long-Run Average Cost from 600 to 900.
The firm depicted in Figure 7-10 is currently at point F producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will Q 40 Figure 7-10 Dollars per Unit ATC LRATC ATC 200 375 Units of Output O adjust from point F to point G in the short run O be unable to adjust to point G in the short run because some inputs are fixed O be unable to adjust to point G in the long run because no inputs are fixed O be unable to adjust to point H in the short run because some inputs are fixed O adjust from point F to point H in the long run
The owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some economic advice. He has told you that the market price for his shirts is $12 and that he is currently producing 200 shirts at an AVC of $10 and an ATC of $14. What do you recommend he do in the short run? O shut down continue at current capacity O operate O exit O expand
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
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