SECTION B:IDENTIFICATION OF COST CURVESFrom Figure 1 Identify the cost curves 41, 42, 43, and 44.41Cost424344Quantity of outputFigure 1: Cost curves MARKSFigure 2 has portions labeled I to IV. Use it to answer questionsCostIIOutput ScaleFigure 2: Long-run and short-run Average Cost curves for a farm f45.Identify the curve labeledAt which portion of Figure 2 does the firm experience:46.Diseconomies of scale?47.Increasing returns to scale?Constant returns to scale?Economies of scale?Decreasing returns to scale?48.4950.Page 8 of 9192

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SECTION B: IDENTIFICATION OF COST CURVES From Figure 1 Identify the cost curves 41, 42, 43, and 44. 41 Cost 42 43 44 Quantity of output Figure 1: Cost curves

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

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.

Question

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SECTION B:
IDENTIFICATION OF COST CURVES
From Figure 1 Identify the cost curves 41, 42, 43, and 44.
41
Cost
42
43
44
Quantity of output
Figure 1: Cost curves

MARKS
Figure 2 has portions labeled I to IV. Use it to answer questions
Cost
II
Output Scale
Figure 2: Long-run and short-run Average Cost curves for a farm f
45.
Identify the curve labeled
At which portion of Figure 2 does the firm experience:
46.
Diseconomies of scale?
47.
Increasing returns to scale?
Constant returns to scale?
Economies of scale?
Decreasing returns to scale?
48.
49
50.
Page 8 of 9
192

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question # 2
For each lettered space in the following table, determine the appropriate dollar amount.