The short run average variable cost curve Explain answer a. Is always downward-sloping b. Starts at the origin C. Starts above the origin and always slopes upward d. Is a horizontal line intersecting the vertical axis e. Slopes downward at low rates out output, then slopes upward at higher rates of output

Q: A3

A: In a market, when a firm faces U-shaped average cost curve in the long-run, it implies that the…

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b. Returns to…

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Q: Comment on the relationships of Total, Marginal and Average Product

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Q: Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The variable cost…

A: Introduction  Total cost, in economics, the sum of all costs incurred by a firm in producing a…

Q: Lesson 8 - Costs Question 4

A: The correct answer is:d. ATC intersects with AVC at the minimum of ATC.  This statement is correct…

Q: Order the following components of a long run average cost curve as output expands based on which…

A: In the long-run, an average cost curve shows different phases of production when average cost…

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×

Q: At the point where marginal cost equals average total cost, average total cost will be increasing.…

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Q: 1 Average fixed cost equals a. Average total cost minus average variable cost b. Total variable cost…

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Q: A 1 L (Labor) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 C D Q (Total Product) MP (Marginal Product) AP…

A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: QUESTION 4 Match each of the following terms and descriptions Average Fixed Cost Average Total Cost…

A: Providinf full. Solution.

Q: Lesson 8 - Costs Question 11

A: The correct answer is c. Economy of Scale. Here's why the other options are incorrect:a. Constant…

Q: A firm’s marginal product will be at a maximum at which of the following levels of output?…

A: To determine the level of output at which a firm's marginal product will be at a maximum.

Q: Which long-run average total cost (LRTC) graph exhibits diseconomies of scale? LRATC LRATC

A: "Correct option is the first graph which is upward sloping."

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

A:

Q: D. Average Cost (AC) E. Average Variabel Cost (AVC) F. Average Fixed Cost (AFC) Please solve…

A:

Q: QUESTION 3 Match each of the following terms and descriptions Fixed Cost Total Cost A. fixed cost…

A: Fixed cost is that cost which are not changed as output changed its remains constant. That means if…

Q: What number goes where the highlighted question marks are? In other words, what is the last number…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: In a short-run production process, a diminishing marginal product of labor explains why marginal…

A: Diminishing Marginal product means that the increase in the output from the additional labor…

Q: Which of the following is NOT a feature of iso-product curve? Iso- product curves

A: An iso-product curve is locus of numerous mixtures of elements of manufacturing giving the identical…

Q: Diminishing returns occurs in the short run because: A.There are variable inputs to production in…

A: According to the law of diminishing marginal returns, the marginal product decreases as more and…

Q: Given the cost information below, answer the following questions. Output 0 Total Cost $ 10.00 19.76…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: If a firm triples inputs and produces twice the output, then there are constant returns to scale.…

A: Return to scale is a long-run concept that states the proportional change in output due to a…

Q: which of the following statements about the short-run production is true   A. Total product starts…

A: We have to find true statement of short run production function.

Q: Refer to Exhibit 21-4. Curve D is a(n) a. average total b. marginal c. average fixed d. average…

A: Average variable cost is the variable cost divided by the quantity. AVC is U shaped curve. Average…

Q: When the average total cost curve is at its minimum, we know that the: a. marginal cost curve is…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: relationship between total product, marginal product, and average product

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Q: Suppose a hotel exhibits constant returns to scale as it increases its output. If it increases  all…

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Q: Diseconomies of scale exist over the range of output for which the long-run average cost curve is a.…

A: The firms are considered to be the producers who work with the motive of earning maximum possible…

Q: Consider the following information on long run total costs: Output 1 2 3 4 5 6. 7 Total Costs 50 90…

A: Output Total Cost Marginal Cost ATC 0 0 0 0 1 50 50 50 2 90 40 45 3 123 33 41 4 160 37 40…

Q: Refer to the short-run production and cost data. In Figure A curve (1) is: total product and curve…

A: Marginal product and marginal cost are mirror images of each other. Average product and average…

Q: In the figure, the intersection of curves A and B is the point at which 20 16 20 40 60 80 Quantily…

A:

Q: The ff are true about economies of scale except one a. It is concept in cost function b. Costs…

A: Economies of scale arises from efficiency in labor productivity which causes long run average cost…

Q: Cost (dollars) 150 100 50 0 5 10 D $15 20 B Output (teapots per day) 5. Refer to Figure above. Which…

A: A. The vertical gap between curves B and C is equal to average variable cost. [FALSE]The vertical…

Q: Using diagram, explain returns to scale and their influence on a firm's long-run average cost…

A: Economies of scale relate to the cost benefit a firm has when it raises the quantity of its output.…

Q: Graph the curves for total cost, ATC, AVC, AFC, MC. Explain shape of these curves and the…

A: There exist various relationship between these curves.

Q: Total Revenue function = 164x Total Cost function = 0,01x2+20x+300 x shows unit of production.…

A: Given the values: TR = 164x TC = 0.01x2+20x+300