Use the graph to answer the question Between points C and D, the long-run average total cost curve is characterized by ________ because the firm is experiencing ________ returns to scale.   A-constant returns; constant B-economies of scale; increasing C-economies of scale; constant D-diseconomies of scale; increasing E-diseconomies of scale; decreasing

Q: 14. A firm’s long-run total costs are given in the table below.   Output Long Run Total Cost…

A:

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A:

Q: 5. Costs in the short run versus in the long run Ike's Bikes is a major manufacturer of bicycles.…

A: As per the question, the short run is the period where the firm would not be able to adjust with…

Q: 12. If a firm doubles all inputs and this causes output to more than double, we can say that: A.…

A: If a firm more than doubles its output by double all of its inputs, the firm is in increasing…

Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…

A: To produce 100 bikes using 1 factory, short run average cost is $360.

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

A: Economies of scale: Economies of scale  are the cost advantage happens due to increase in…

Q: 16. If a firm increases both its plant and labor by the same pa the firm is experiencing A.…

A: The changes in long-run average cost with respect to output decide whether the firm is experiencing…

Q: * 25 20 15 LRAC 10 5 10 15 20 25 30 Quantity (units per hour) Cost (dollars per unit)

A: Economies of scale occurs when LRAC decreases as quantity increases Diseconomies of scale occur when…

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

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Q: 25 es A firm's long run total costs are given in the table below. Instructions: Round your answers…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you.…

Q: Define Minimum Average Cost and Efficient Scale.

A: Minimum Average  Cost :The average cost or average total cost is per unit cost incurred by the firm…

Q: The Generator is a popular youth hostel in London located near Kings Cross. The hostel provides a…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping…

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: 1) Use the graph to answer the question. Between points C and D, the long-run average total cost…

A: As per the guidelines answer is given to the first question. (1) "Long run average total cost curve…

Q: When diseconomies of scale occur: CA. the long-run average total cost B. marginal cost intersects…

A: The average total cost (AC) is the per unit cost of production of the firm. The long run average…

Q: © Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If…

A: The average total cost refers to the approximate total cost of production a firm incurs at different…

Q: 4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of…

A: Return to Scale: The return to scale refers to the behavior of output when all the inputs or factors…

Q: AVERAGE TOTAL COST (Dollars per bike) 640 560 480 400 320 240 160 80 0 0 100 200 300 400 QUANTITY…

A: Short-run is such a period in which at least one of the factors of production is fixed whereas the…

Q: SECTION B: IDENTIFICATION OF COST CURVES From Figure 1 Identify the cost curves 41, 42, 43, and 44.…

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

Q: A firm experiemces A) diseconomies of scale, average total cost curve slopes downward B) economies…

A: C)diminishing marginal Returns; average total cost curve shift upward

Q: QUESTION 2 A firm is considering changing its plant size. It calculates the amount of output it…

A: Answer: Diseconomies of scale: diseconomies of scale occur when due to an increase in the quantity…

Q: SRATC or small plant SRATC tor medium plant SRATC for arge plant LRATC S500 Diseconomies of Scale…

A: Costs in the long run are determined by the firm's level of output, factor costs, and the quantities…

Q: Discuss the connection between returns to scale and diminishing marginal product. Provide graphs to…

A: Definitions In the short run, increasing input after reaching maximum capacity while keeping at…

Q: 5. Economies of scale occur when a. the long run total cost is decreasing b. the long run total…

A: Answer to the question is as follows :

Q: 2. Problems and Applications Q7 Your cousin Vinnie owns a painting company with fixed costs of $150…

A: Variable expenses vary according on the amount of product generated. Labour, commissions, and raw…

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…

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.