When a firm experiences increasing returns to scale a. its AFC will decrease. b. its AFC will increase. c. its AC will increase. d. its AC will decrease.
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When a firm experiences increasing returns to scale
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- 35. If a firm triples inputs and produces twice the output, then there are constant returns to scale. no returns to scale. decreasing returns to scale. increasing returns to scale. Don't answer by pen paper and don't use chatgpt otherwise we will give dounvoteA firm is producing 20 units with an averagetotal cost of $25 and a marginal cost of $15. Ifit increases production to 21 units, which of thefollowing must occur?a. Marginal cost will decrease.b. Marginal cost will increase.c. Average total cost will decrease.d. Average total cost will increase.ips Under decreasing returns to scale, average cost cost curve. as the quantity produced increases. Over this range of output, the marginal cost curve is Grade It Now the average Save & Continue
- Diseconomies of scale are present when. Select one or more: a. total costs fall as output rises b. total costs rise as output rises O c. long run average costs rise as output rises d. marginal costs risec. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?a. Complete the table below Quantity TC TVC AFC ATC MC AVC 1 200 2 100 3 20 4 240 5 24 6 660 160 b. Using the table below indicate if the firm has (i) diseconomies of scale (ii)economies of scale or (iii) constant returns to scale over the entire range ofoutput. Explain your answer . Quantity (units of output) 1 2 3 4 5 6 7 firm A 60 70 80 90 100 110 120 FIRM B 11 24 39 56 75 96 119 FIRM C 21 34 49 66 85 106 129 c. Evaluate the view that the main goal of firms will always be cost minimization.
- 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%.Whereat for the firm operating at it efficient scale, a. the marginal cost curve intersects at the minimum point of AVC curve. b. the marginal cost curve intersects at the minimum point of ATC curve. c, the marginal cost curve intersects at the minimum point of AFC curve. d. the slope of total cost is the smallest.The lawn ranger , a landscaping company , has total costs of $15,000 and total fixed cost of $13000 .The lawn ranger's toal variables cost are a. indeterminate because the firm's output level is not known.b. $3,000.c. $5,000.d. $2,000.
- Question 15 Examine the graph below. The firm is experiencing decreasing returns to scale between points SRATC5 E LRATC SRATC₁ SRATC₂ SRATC4 BCD Quantity of Output Average Cost (dollars) O A and B O B and C. OB and D C and E. SRATC3Q2. Law of diminishing marginal returns is applicable in both short run as well as long run. is it true or false? whats is the explanation demonstrate a graph$22 00 20.00 18.00 Which size bookstore is more likely to experience diseconomies of scale? Long-run Average cost OA Abookstore selling 1,000 books per month B. Abookstore seling 20,000 books per month C. Abookstore selling 40,000 books per month 1,000 20.000 Quantity of books sokd per month 40,00D,000 D. Abookstore seling 80,000 books per month Average cost