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: 1. This market structure has a lot of competitors selling non-identical goods. A. Perfect…

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

Q: At 7 units of output, average fixed cost is and average approximately___ variable cost is…

A: Average Variable Cost: AVC refers to the average of the variable costs incurred by the companies…

Q: A firm encountering economies of scale over some range of output will have a a. rising, then…

A: Microeconomics is a part studied under economics that is used to understand the demand and supply…

Q: 1. Diminishing marginal returns refers to a situation where the of the previous worker. less than…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: 3. Average Fixed Cost is the a. horizontal distance (at any particular cost level) between ATC and…

A: A company's total cost is divided into fixed and variable costs. A "fixed cost" remains constant…

Q: Microsoft's operating system is an example of a system produced with Select one: O a. Economies of…

A: Economies of Scale:This refers to the cost advantages that a business can achieve as its production…

Q: Cost LRAC 40 30 20 10 100 200 400 800 Output c. What is the firm experiencing as it increased it…

A: The graph shows the long run average cost curve.  c) If the firm increases the scale of operations…

Q: When average product increases, which short-run cost variable also changes? The output range over…

A: Marginal cost refers to the change in total cost with respect to change in output. Average total…

Q: 3. What causes the long run costs to be U shaped a. Economies and Diseconomies of Scope b.…

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

Q: Chapter 13: Cost of Production Questions: 1. Which is bigger... accounting profit vs. economic…

A: Total cost is the total cost of production, which includes both fixed and variable costs. Marginal…

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: A firm have fixed cost of 70$ and a variable cost as indicated in the table. complete the table…

A: We have given a table in which variable cost (TVC) is mentioned and the total fixed cost is 70 We…

Q: 4. A firm has the following production function: Q = 50L + 6L² – 0.5L3 %3D (a) production function.…

A: Answer - "Thank you for submiting the questions.But, we are authorized to solve first sub parts…

Q: Use the graph below to answer the following question. 10 8 Long Run Average Total Costs

A: The long run average total cost curve (LRATC) shows the per unit total cost incurred by the firm 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: 1. Individual Problems 3-7 A business incurs the following costs: • Labor: $195/unit • Materials:…

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

Q: When a firm experiences declining long-run average total costs as it produces more output, there are…

A: In the LR, the costs depend on the output level, the factor cost, and the factor's quantity which is…

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: Refer to Figure 1. Which of the short-run average cost curves correctly depict economies to scale?…

A: Long-run average cost The long-run average cost is tangent to the falling portion of the short-run…

Q: What is the formula to calculate profits?

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Cost LRAC A Quantity Figure 1 Long run average cost curve for a firm Figure 1 shows a long run…

A: We have to find Long run average cost curve.

Q: Total Costs Marginal Costs Use the following information to answer the question. Variable Costs $20…

A: Option a) $52: This option is incorrect because it inaccurately computes the average fixed cost for…

Q: Let the average variable cost of production be $20 when 10 units are produced in the first year. In…

A: The concept of experience curve is given by BCG (i.e., Boston Consultancy Group) It states that as a…

Q: Assume a firm has the long run total cost presented in the table below. Output TC $8 $14 $18 4. $20…

A: The total cost of production is defined as the amount in monetary terms a firm incurs when it…

Q: Question 6 The table below describes the cost functions for a food manufacturer. Total Fixed…

A: Total cost is the sum of fixed cost and variable cost. Fixed cost does not depend on output and…

Q: 1. Diseconomies of scale exist when: (Consider that more than one answer is correct.) there is…

A: 1. The answer is - Coordination problem s arise that are inherent in any large organisations Long…

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: 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: 2. Derive the long run average total cost curve and show minimum efficient scale on it.

A: Total Cost curve(TC) is the cost that is incurred in the production of goods in firms. It consists…

Q: 4. Firm's Costs Your cousin Vinnie owns a painting company with fixed costs of $200 and the…

A: Quantity (Q)Variable Cost (VC)Average Fixed Cost (AFC = FC/Q)Average Variable Cost (AVC)Average…

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: 2.7 The concept of economies of scale refers to lower per- unit production costs at higher levels of…

A: The economies of scale takes place when there is reduction in the cost of production with the…

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

A: Returns to scale is about the relationship between input and output. It refers to the amount of…

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.