Suppose a hotel exhibits constant returns to scale as it increases its output. If it increases  all its inputs by 10%, its: A. total cost will increase by less than 10% B. average total cost will increase by 10% C. output will increase by 10%. D. long run average cost curve will shift to the right by 10%.

Q: A3

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Q: If a firm quadruples (4x) in size and output increases sixfold (6x), what is the returns to scale?

A: Here input increase 4× and output increase 6×

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Q: Define Economies of Scale, Diseconomies of Scale, Constant returns to scale.

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Q: Lesson 8 - Costs Question 11

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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Q: 800 Is 720 640 SRATC, 560 480 SRATC, 400 320 SRATC, 240 160 LRATC 80 100 200 300 400 500 600 700…

A:

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Q: Why does the marginal product curve have an inverted “U” shape?

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Q: the main difference between the short run and the long run

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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.